X and the World Federation of Advertisers have settled their legal dispute over allegations that major brands coordinated an illegal advertising boycott of Elon Musk’s social media platform. The settlement ends a case that began in 2024 and was dismissed by a federal judge in March 2026.
The financial and legal terms were not disclosed. In a joint statement, the organisations said they were putting the dispute behind them and resetting their relationship.
X Accused Advertisers of Coordinating Spending Cuts
X sued the World Federation of Advertisers and several major companies after advertising revenue declined following Musk’s $44 billion acquisition of Twitter in 2022. The lawsuit alleged that advertisers acted together through the Global Alliance for Responsible Media to withhold billions of dollars in spending.
GARM was created in 2019 to develop shared standards intended to prevent advertisements from appearing beside harmful online content. Advertisers denied coordinating an unlawful boycott and argued that individual companies were free to decide where to place their advertising.
Brands had raised concerns about X’s content moderation and brand-safety policies following Musk’s takeover. X argued that the spending decisions went beyond ordinary commercial choices and amounted to anticompetitive conduct.
Federal Judge Dismissed the Case
US District Judge Jane Boyle dismissed X’s lawsuit with prejudice on March 26, preventing the company from filing the same federal antitrust claims again. The judge found that X had failed to show sufficient harm or coordinated conduct under federal competition law.
The defendants argued that advertisers had independently moved spending to competing platforms because of brand-safety concerns. X appealed the ruling in April before reaching the settlement with WFA.
The settlement closes the litigation without a court finding that WFA or the advertisers participated in an illegal boycott.
WFA Says GARM Will Not Return
WFA shut down GARM in August 2024 after the lawsuit and related scrutiny made it difficult to continue operating the initiative. The organisation confirmed in the settlement statement that it would not restart GARM or establish a similar programme.
WFA also reiterated its support for freedom of speech, which it said had been included in its founding constitution since 1953. Both organisations said brands, platforms and consumers would benefit from continued innovation in online brand safety.
The agreement ends one of Musk’s most prominent legal confrontations with the advertising industry. He had previously responded to companies that suspended spending on X by publicly telling them not to advertise on the platform.
Featured image credits: Flickr
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