Elon Musk’s company X has reached a tentative agreement with Twitch to drop the streaming platform from its ongoing advertising boycott lawsuit.
According to a federal court filing in Texas, X signed a “memorandum of understanding” that would remove Twitch from legal proceedings if the Amazon-owned company meets certain undisclosed conditions by the end of 2023.
The lawsuit, filed earlier this year, accuses multiple companies, including Twitch, of conspiring to boycott advertising on X after Musk’s takeover of the platform formerly known as Twitter. X claims this collective action violates antitrust laws and has damaged their business operations.
Since Musk purchased Twitter and rebranded it to X, numerous advertisers have pulled their spending from the platform. Many cited concerns over controversial content, reduced content moderation, and brand safety issues that emerged following policy changes implemented under Musk’s leadership.
The legal strategy seems to follow a pattern some observers have noticed in Musk’s business approach—filing lawsuits that use his substantial resources to pressure companies into settlements rather than engaging in lengthy court battles. This tactic has proven effective in other business disputes involving the tech mogul.
What remains unclear are the specific conditions Twitch must fulfill to be dropped from the lawsuit. The court documents don’t reveal whether financial compensation, resumed advertising, or other requirements are part of the agreement.
This settlement could potentially set a precedent for other companies named in the same lawsuit. If Twitch complies with the conditions, it might signal a path forward for other defendants looking to avoid drawn-out legal fights with Musk’s company.
For Twitch, the decision to settle likely weighs the costs of continued litigation against meeting X’s demands. As one of the dominant platforms in live streaming, Twitch’s advertising decisions carry significant weight in the digital marketplace.
By “free speech”, I simply mean that which matches the law.
— Elon Musk (@elonmusk) April 26, 2022
I am against censorship that goes far beyond the law.
If people want less free speech, they will ask government to pass laws to that effect.
Therefore, going beyond the law is contrary to the will of the people.
The lawsuit highlights the growing tensions between content platforms, advertisers, and free speech advocates. Musk has repeatedly positioned himself as a champion for free expression on X, even as this stance has complicated relationships with major advertisers who prefer more controlled environments for their brands.
