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Elon Musk’s X resolves years-long legal battle with World Federation of Advertisers | TechCrunch

Elon Musk’s X resolves years-long legal battle with World Federation of Advertisers | TechCrunch

Elon Musk’s X has resolved its multi-year legal battle with advertising trade group World Federation of Advertisers (WFA), the two organizations said on Wednesday. The settlement ends Musk’s aggressive attempt to hold advertisers legally responsible for pulling spending from X over brand safety concerns. X demandó a la WFA en 2024 por llevar a cabo

Elon Musk’s X has resolved its multi-year legal battle with advertising trade group World Federation of Advertisers (WFA), the two organizations said on Wednesday.

The settlement ends Musk’s aggressive attempt to hold advertisers legally responsible for pulling spending from X over brand safety concerns.

X demandó a la WFA en 2024 por llevar a cabo lo que llamó un “boicot ilegal sistemático” de la plataforma después de que vio una disminución en los ingresos publicitarios luego de la adquisición de la red social por parte de Musk por 44 mil millones de dólares en 2022. Las empresas X acusadas de hacerlo incluyeron a Mars, CVS Health, Shell, Lego y más. Advertisers rejected the accusations and argued that brands are free to decide where to spend their advertising dollars.

A federal court dismissed the lawsuit in March after a judge said X had failed to prove it had suffered any harm under federal competition laws. X had appealed the decision in April.

“Today, the World Federation of Advertisers (WFA) and X Corp. are moving beyond litigation involving the Global Alliance for Responsible Media (GARM),” the joint statement read. “This restores the relationship between the two organizations.”

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Advertisers were concerned about their brands appearing next to harmful content on the social network after Musk reviewed the platform’s content moderation policies.

“The WFA reiterates its commitment to freedom of expression, a principle first included in the WFA’s founding constitution in 1953, and a principle it shares with X,” the statement read. “On August 9, 2024, WFA discontinued GARM. WFA will not form or restart GARM or a similar initiative. WFA and X are fully aligned in the view that brands, platforms and consumers will benefit from innovation in brand safety.”

The lawsuit wasn’t the only time Musk clashed with advertisers. After acquiring X, it told advertisers who stopped spending on the platform to “fuck off.”

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