X Platform and Advertisers' Body Settle Legal Dispute

The social media platform X, formerly known as Twitter, and the World Federation of Advertisers (WFA) have reached a settlement, ending a legal dispute that has spanned several years. The announcement was made by both parties on Wednesday.

The agreement resolves X's assertive efforts to hold advertisers legally accountable. A significant number of advertisers had reduced or ceased their advertising on X due to concerns over brand safety, particularly following changes in the platform's content moderation policies after Elon Musk's acquisition in 2022.

X had filed a lawsuit against the WFA in 2024, alleging that the organization orchestrated a "systematic illegal boycott" which led to a decline in the platform's advertising revenue. X accused companies including Mars, CVS Health, Shell, and Lego of participating in this boycott. These companies denied the allegations.

A U.S. federal court dismissed X's lawsuit earlier this year, stating that X failed to prove actual damages under federal competition law. X subsequently appealed the decision. In a joint statement, both parties indicated that the settlement marks a new beginning for their relationship. The WFA has ceased its Global Alliance for Responsible Media (GARM) initiative, which aimed to set industry standards for ad placement near harmful content.

Musk's interactions with advertisers have been contentious. Following his takeover of X, he made public, strong remarks directed at advertisers who had paused their spending on the platform.