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Musk's X reaches deal to drop Twitch from lawsuit over ad spending
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Musk's X reaches deal to drop Twitch from lawsuit over ad spending
Apr 8, 2025 7:11 AM

April 8 (Reuters) - Elon Musk's X has reached an

agreement to resolve claims that live streaming service Twitch

conspired with other companies and an advertising industry group

to boycott the social media platform, causing it to lose ad

revenue.

In a court filing on Monday, X told a federal judge in Texas

that it signed a "memorandum of understanding" to drop its case

against Twitch if the Amazon.com ( AMZN ) subsidiary meets

certain unspecified conditions by the end of the year.

X sued Twitch in November as part of a larger lawsuit

alleging about a dozen companies violated antitrust law by

withdrawing advertising on the site. Twitch had not yet

responded to the lawsuit.

Amazon ( AMZN ), Twitch and X did not immediately respond to requests

for comment.

The deal was at least the second by a defendant in the

lawsuit, after X dismissed consumer goods giant Unilever ( UL )

from the case in October.

London-based Unilever ( UL ) said in a statement then that X as

part of the agreement "committed to meeting our responsibility

standards to ensure the safety and performance of our brands on

the 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.

Advertising expenditure on X slumped for months after Musk

bought the platform in October 2022.

Some advertisers had been wary of buying ads on X following

Musk's acquisition amid concerns their brands would appear next

to harmful content, such as racist or false posts, that under

prior management might have been removed.

Other defendants remaining in the lawsuit include CVS,

Pinterest ( PINS ) and Colgate-Palmolive ( CL ). They did not

immediately respond to requests for comment.

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