Elon Musk’s X Inches Closer To Trimming Legal Battle, Reaches Settlement Path With Twitch
X had originally filed the lawsuit in November, targeting about a dozen entities including Twitch, accusing them of violating antitrust laws.
Elon Musk’s social media platform, X (formerly Twitter) has moved toward dropping its lawsuit against Twitch, the live-streaming platform owned by Amazon. According to a court filing submitted in Texas on Monday, X has signed a "memorandum of understanding" with Twitch, reported Reuters. The document outlines that the lawsuit against Twitch will be dropped if the platform fulfills certain undisclosed terms by the end of 2025.
This signals a potential thaw in a broader legal dispute where Musk’s X has accused multiple companies and an advertising coalition of coordinating a boycott that severely dented the platform’s ad revenue.
X had originally filed the lawsuit in November, targeting about a dozen entities including Twitch, accusing them of violating antitrust laws through what it described as an orchestrated withdrawal of advertising dollars. Twitch had not responded to the suit publicly until now, and neither Amazon, Twitch, nor X have issued statements in response to recent developments.
Twitch Follows Unilever’s Footsteps
This tentative resolution with Twitch marks the second time a defendant may be let off the hook in this case. Back in October, X dismissed global consumer goods company Unilever from the lawsuit after both parties reached an agreement. At the time, Unilever issued a statement saying, X had "committed to meeting our responsibility standards to ensure the safety and performance of our brands on the platform."
The lawsuit had also targeted the World Federation of Advertisers along with some of its high-profile members, accusing them of collusion that allegedly cost X billions in advertising losses.
Ad Exodus After Musk Takeover
X’s troubles with advertisers began shortly after Musk’s acquisition of the platform in October 2022. Major brands grew increasingly cautious about advertising on the site, citing concerns over content moderation standards. There were fears that ads might appear next to harmful or offensive content, such as racist remarks or misinformation, posts that were previously taken down under the former Twitter leadership.
The companies still facing litigation include household names like CVS, Pinterest, and Colgate-Palmolive. Their fate in the lawsuit remains unclear as X continues to fight back against what it sees as an organized attempt to cripple its ad business.
With Twitch potentially off the list, Musk’s X appears to be slowly chipping away at its courtroom adversaries, one settlement at a time.
Top Headlines
