Elon Musk’s X Battles Advertisers Amid Controversies and Legal Clashes

In 2024, Elon Musk continued to dominate headlines, not just for his provocative political commentary and support for right-wing causes, but also for a tumultuous year battling advertising boycotts and legal challenges over his social media platform, X.

The discord with advertisers traces back to Musk’s $44 billion acquisition of Twitter (now X) in 2022. Post-acquisition, major brands such as Apple, Disney, and Coca-Cola suspended advertising, citing concerns over content moderationand brand safety.

The situation escalated in November 2023 when Musk’s controversial remarks at the New York Times DealBook Summit led to another wave of boycotts and an estimated $75 million loss in advertising revenue. Musk’s stance on free speech absolutism continued to clash with advertisers' demands for brand safety standards.

Turning Point at Cannes Lions 2024

In June 2024, Musk sought to repair relationships at the Cannes Lions Festival, speaking alongside WPP CEO Mark Read. He clarified his infamous 2023 comments, which had alienated advertisers, explaining that his criticism targeted those advocating censorship rather than the industry as a whole.

The Summer Legal Showdown

By August, tensions reached a breaking point. Musk filed an antitrust lawsuit in a Texas federal court against the World Federation of Advertisers (WFA), Unilever, Mars, CVS Health, and others. He accused them of an orchestrated boycott that had cost X billions in losses.

Musk’s fiery declaration—“We tried peace for two years; now it is war”—signaled his frustration with GARM, WFA’s brand safety initiative, alleging they conspired to withhold advertising revenue. In a surprising twist, GARM dissolvedby the end of August, marking a seismic shift in the advertising landscape.

Congressional Hearings and Legal Maneuvering

The conflict extended to Capitol Hill in July, as Musk’s allies summoned representatives from GARM, GroupM, and Unilever to testify before Congress about their advertising practices. However, by October, tensions began to ease as X dropped Unilever from the lawsuit, followed by a mutual agreement citing X’s improved commitment to responsibility standards.

A Resurgence in Advertising

November brought a surprising recovery for X. MediaRadar data revealed that major corporations—including Comcast, IBM, Disney, and Warner Bros. Discovery—had resumed advertising on the platform. This resurgence coincided with Donald Trump’s victory in the US elections, aligning with Musk’s public support and $119 million campaign contribution to the Republican candidate.