Elon Musk’s social media company, X, has reached a tentative agreement with Amazon-owned Twitch to dismiss a high-profile lawsuit that accused the live-streaming platform of colluding to damage X’s ad revenue. The dispute centered on allegations that Twitch, alongside other firms and industry groups, orchestrated a coordinated advertising boycott intended to exert financial pressure on X following its turbulent transformation under Musk’s ownership.
According to a memorandum of understanding filed in a Texas federal court, X will drop the case if Twitch meets certain undisclosed conditions by the end of 2025. The agreement signals a partial de-escalation in X’s broader legal campaign against corporate advertisers and industry groups, which Musk has accused of participating in an anti-competitive scheme to undermine the platform.
The lawsuit, originally filed in November 2024, named over a dozen companies and the World Federation of Advertisers, claiming they engaged in antitrust violations. It alleged that major brands conspired to withdraw their advertising en masse, citing concerns about brand safety and content moderation after Musk’s acquisition of the platform in late 2022. The complaint portrayed the boycott as a targeted effort to chill speech and punish the platform for its stance on content governance.
X has already reached a similar resolution with Unilever, another defendant, which agreed to resume advertising under revised brand safety terms. Remaining parties to the suit include household names such as CVS, Colgate-Palmolive, and Pinterest, whose cases are still pending.
This latest development reflects the ongoing tension between digital platforms and advertisers over content accountability, reputational risk, and market influence. While X maintains that its policies protect free expression, advertisers have expressed discomfort over association with potentially harmful or unmoderated content. The case underscores the fragile balance between platform independence and the economic leverage wielded by corporate advertisers.
As the settlement proceeds toward finalization, the outcome may influence future industry standards around brand safety, competition law, and the limits of advertiser coordination in digital markets. The legal trajectory also signals how platforms like X are increasingly prepared to challenge advertising norms through aggressive litigation and public scrutiny.
