• by Wendy Davis  @wendyndavis, April 8, 2025

Amazon's Twitch has agreed to settle a lawsuit by Elon Musk's X Corp., which alleged that Twitch participated in a boycott aimed at depriving X, formerly Twitter, of ad revenue after its acquisition by Musk.

Attorneys for X Corp. informed U.S. District Court Judge Jane Boyle in Wichita Falls, Texas, late Monday that it had entered into a “memorandum of understanding” with Twitch that will resolve the claims, provided certain conditions are met by the end of the year.

Counsel asked Boyle to pause proceedings in the matter until January 10 2026, when either X Corp. will officially dismiss all claims against Twitch, or the two companies will file a status report.

The legal dispute between Musk and Twitch dates to November, when the X owner added Twitch as a defendant to a sprawling lawsuit alleging that the World Federation of Advertisers and its now defunct Global Alliance for Responsible Media (GARM) sparked a “massive advertiser boycott” that cost the company billions in ad revenue.

The original complaint also named Danish energy company Ørsted, food companies Unilever and Mars, and healthcare company CVS Health as defendants. In February, Musk also named Abbott, Colgate, Lego, Nestle, Pinterest, Shell, and Tyson as defendants.

X dismissed the claims against Unilever in October as the result of a settlement.

Musk's original complaint, filed last August, came three weeks after the Republican-led House Judiciary Committee issued a report accusing GARM, a brand safety initiative, of coordinating action by corporations, ad agencies and other industry groups in order to “demonetize platforms, podcasts, news outlets, and other content deemed disfavored by GARM and its members.”

The House staff report alleged that GARM colluded with others to cut ad revenue to X after Musk purchased it in October 2022. GARM shut down soon after the suit was filed.

A spokesperson for the now-defunct GARM said at the time that the organization "enhances transparency in previously opaque practices relative to ad placements in digital social media."

“GARM creates voluntary industry standards on brand safety and suitability which media sellers and ad tech companies can voluntarily adopt, adapt or reject," the spokesperson said last year.

Amazon hasn't yet responded to MediaPost's request for comment.