Elon Musk’s social media platform X has reached an agreement with live streaming service Twitch to resolve claims that Twitch conspired with other companies and an advertising group to boycott X, resulting in a loss of advertising revenue.
According to a court filing made on Monday, X informed a federal judge in Texas that it had signed a “memorandum of understanding” to drop its case against Twitch if the Amazon subsidiary meets certain undisclosed conditions by the end of the year.
X had filed the lawsuit against Twitch in November as part of a broader legal action involving multiple companies that allegedly violated antitrust laws by pulling their advertising from the platform.
This deal marks at least the second settlement in the ongoing lawsuit. Earlier in October, X dismissed consumer goods company Unilever from the case. In the settlement with Unilever, X committed to meeting responsibility standards to ensure the safety and performance of the brands on its platform.
X’s lawsuit accused the World Federation of Advertisers and some of its corporate members of conspiring to withhold billions of dollars in advertising revenue from X, previously known as Twitter. Since Musk’s acquisition of the platform in October 2022, advertising spending on X has declined as several advertisers expressed concerns about ads appearing alongside harmful content, which might have been removed under previous management.
Other companies still involved in the lawsuit include CVS, Pinterest, and Colgate-Palmolive.
