The Internet Association will close its doors at the end of the year, with the group saying the industry it represents has undergone considerable change since its founding in the previous decade.

Politico, citing anonymous sources, reported Tuesday that IA would dissolve amid financial struggles caused by the departure of tech giant Microsoft earlier this year. The association's board confirmed that decision in a statement Wednesday, although it did not provide details about the reasons it was shuttering the organization.

"Our industry has undergone tremendous growth and change since the Internet Association was formed almost 10 years ago, and in line with this evolution, the Board has made the difficult decision to close the organization at the end of this year," it said.

IA was launched with much fanfare in 2012. The group brought together some of the largest players in the online economy, including Google, Facebook and eBay. The association's founding CEO, Michael Beckerman, left in 2020 to become head of U.S. policy for TikTok.

The group is currently led by CEO K. Dane Snowden. Media reports have painted IA as an organization plagued by policy disagreements among its membership and staff unhappiness with its current leadership. There have been sharp divides among the group's larger members and its smaller members on several hot-button policy issues. For example, it has stayed out of the debate over whether larger internet-based companies such as Amazon and Google should be penalized under antitrust laws, much to the annoyance of both, Politico reported.

IA reported more than $10 million in revenue in its 2020 tax disclosure documents. It lists 42 member companies on its website. Some of IA's largest members reportedly paid up to $1 million in annual dues, with the association focused almost exclusively on advocacy. The IA website features the names and photos of 20 staff.

"The Board is grateful to the staff who have supported the member companies," the board said in its statement. We would especially like to thank K. Dane Snowden and his team for their tremendous work over the past year.

"IA has made great progress on its mission to foster innovation, promote economic growth and empower people through a free and open internet. As this chapter closes, member companies remain committed to advancing public policy in support of this mission and will continue to work with stakeholders in other capacities."