X, formerly Twitter, has settled a protracted legal dispute with the World Federation of Advertisers (WFA), which X had accused of orchestrating an "illegal boycott." The social media platform's parent company, X Corp, initiated legal action in 2024, alleging the WFA and a group of advertisers conspired to divert "billions of dollars" in ad revenue away from the site.

The advertisers contested these claims, asserting their right to choose where to allocate their marketing budgets. While a federal judge dismissed the case in March, X appealed in April. On Wednesday, X Corp and the WFA announced they are "putting the litigation . . . behind them," aiming to reset their relationship. The terms of the settlement were not disclosed.

This agreement concludes one of Elon Musk's most confrontational actions against the advertising industry, which intensified after X's revenue plummeted following his $44bn acquisition in 2022. The WFA stated its commitment to freedom of speech and shared views with X on brand safety innovation, adding it would not restart the Global Alliance for Responsible Media (Garm) initiative, which X had cited as a cause for reduced spending.