Technology and Science29 July, 20262 min read
Elon Musk’s X Settles Ad Boycott Lawsuit With World Federation of Advertisers
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
X and WFA settled their multiyear legal dispute, ending the litigation. Settlement ends X's claims that WFA orchestrated a systematic illegal boycott.
Settlement ends GARM fight
Elon Musk’s X and the World Federation of Advertisers (WFA) settled their legal dispute over allegations that a now-defunct industry initiative coordinated an advertiser boycott of X, ending litigation that stemmed from X’s claims about the WFA’s Global Alliance for Responsible Media (GARM). The settlement follows a March ruling in which US District Judge Jane Boyle dismissed X’s antitrust lawsuit after finding X had failed to demonstrate that it suffered harm under federal antitrust law.
X had filed the lawsuit in 2024 alleging that advertisers acting through GARM collectively withheld billions of dollars in advertising spending after disagreeing with changes to the platform’s content moderation policies following Musk’s acquisition of the company. In a joint statement, the WFA and X said they were “putting the litigation…behind them,” and that “this resets the relationship between the two organizations.”
Freedom of speech and exits
The WFA reaffirmed its commitment to freedom of speech, saying the principle has been part of its constitution since 1953 and is shared by X, while also reiterating that it permanently shut down GARM in August 2024. In the settlement framing, TechCrunch quoted the joint statement saying, “Today the World Federation of Advertisers (WFA) and X Corp. are putting the litigation involving the Global Alliance for Responsible Media (GARM) behind them,” and described it as a reset between the organizations.
TechCrunch also reported that the WFA said it would not form or restart GARM or a similar initiative, and that WFA and X are aligned that “brands, platforms, and consumers will all benefit from brand-safety innovation.” Ars Technica described Musk’s posture before the settlement, quoting him declaring “it is war” on X about eight months after he told advertisers who refused to buy X ads to “go fuck yourself.”
What changes next
The dispute had been tied to X’s claim that the boycott reduced its advertising revenue, with ADWEEK reporting that X’s 2024 ad revenue was $1.7 billion, down more than 62% from pre-Musk acquisition levels per an S-1 filing made by X’s parent SpaceX in May. ADWEEK also said the case alleged advertisers illegally colluded through GARM to boycott X and steer advertising investment away from right-leaning media platforms, while the WFA and advertisers maintained that no illegal coordination occurred and that each brand independently decided where to advertise.
Beyond the X-WFA settlement, ADWEEK reported that the US Federal Trade Commission under Trump appointee Andrew Ferguson launched a probe into whether advertising groups, ad verification firms, and media-rating organizations illegally coordinated to shape advertising investment choices, issuing Civil Investigative Demand (CID) letters to organizations including Media Matters for America, Ad Fontes Media, NewsGuard, Global Disinformation Index, and Integral Ad Science. Ars Technica characterized the end of the fight as a settlement that reveals little about the deal, while noting that GARM was quickly disbanded after Musk called out the initiative for setting brand standards that X said led advertisers to steer clear of X.