In a dramatic turn no one saw coming, Elon Musk’s platform X (formerly Twitter) is on the brink of settling one of the most talked-about legal clashes in tech. The company has struck a potential deal with Twitch, Amazon’s powerhouse streaming service, to resolve accusations of a secretive advertising boycott that cost X millions in revenue.

According to a court filing submitted on Monday, X stated that it signed a “memorandum of understanding” with Twitch. Under this agreement, the lawsuit will be officially dropped if Twitch fulfills certain undisclosed conditions by the end of 2025.

Background of the Lawsuit

X had filed the lawsuit in November 2023, accusing Twitch and around a dozen other companies including members of the World Federation of Advertisers of violating antitrust laws. X claimed these companies conspired to withdraw billions of dollars in advertising from its platform, which led to major revenue losses.

The case ties back to October 2022 when Elon Musk took control of Twitter. Following the acquisition, many advertisers paused or canceled their ad campaigns due to concerns about content moderation. There was widespread fear that ads might appear alongside offensive, misleading, or harmful content that previous Twitter management would have removed.

Other Developments in the Case

Twitch is not the first company to move toward settlement. In October, Unilever was removed from the case after reaching an agreement with X. At that time, Unilever said the platform had

“committed to meeting our responsibility standards to ensure the safety and performance of our brands on the platform.”

Despite these developments, several major brands remain involved in the lawsuit including CVS, Pinterest, and Colgate-Palmolive. None have commented publicly on the ongoing case.

What This Means for the Industry

This case goes beyond just one platform and a few brands. It reflects a broader power struggle in the tech and advertising world where platforms like X are fighting to regain trust and advertising dollars, while brands demand stricter content controls to protect their image. As X continues to redefine its direction under Musk’s leadership, its ability to rebuild advertiser confidence will be key to its long-term survival and this legal progress with Twitch could be a step in that direction.