The resolution brings an end to a 2024 lawsuit where X alleged that corporations including Mars, CVS Health, Shell, and Lego conspired to withhold advertising revenue. The social media giant claimed these actions violated antitrust laws, stemming from concerns over brand safety following Musk’s 2022 acquisition. However, a federal court previously dismissed the case, citing a lack of evidence regarding damages under competition statutes.
In section Startups & Technology
X ends legal fight against advertising trade group
Elon Musk’s X has reached a settlement with the World Federation of Advertisers, concluding a legal clash that accused major global brands of orchestrating an illegal boycott. The agreement marks a decisive shift in X's aggressive strategy to force companies to resume spending on the platform following a mass exodus of advertisers.
Under the terms of the settlement, the World Federation of Advertisers confirmed it has discontinued the Global Alliance for Responsible Media, an initiative designed to set content standards that Musk frequently criticized. The trade group explicitly stated it would not restart the program or form similar bodies, signaling a full retreat from the standards that initially prompted the platform's content moderation disputes. The two organizations now claim to be aligned on the future of brand-safety innovation, effectively closing a chapter defined by Musk’s public volatility toward the advertising industry.
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