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.