Elon Musk's X, the social media platform formerly known as Twitter, has agreed to pay $10 million to settle a lawsuit with President Donald Trump, according to a report by the Wall Street Journal. The lawsuit stems from Twitter's decision to ban Trump's account in 2021, following the January 6 storming of the U.S. Capitol by his supporters.

The settlement marks a significant development in the ongoing saga between Trump and the social media companies that banned him in the wake of the Capitol riots. Trump's team had reportedly considered dropping the lawsuit against X due to the President's close relationship with Musk, which has grown stronger over the past two years. However, Trump ultimately decided to move forward with the settlement.

The $10 million settlement is significantly lower than the $25 million settlement Meta agreed to pay in January to settle a related lawsuit. The Meta settlement was also related to Trump's ban from the platform, and the two settlements suggest that social media companies are willing to pay a premium to avoid prolonged legal battles with the former President.

Musk's decision to settle the lawsuit is notable, given his previous efforts to curry favor with Trump. In 2022, Musk reinstated Trump's Twitter account, and later spent more than $250 million on Trump's 2024 Presidential campaign. The two also held a joint press briefing from the Oval Office earlier this week, highlighting the close ties between Musk and Trump.

Despite the settlement, the implications of the lawsuit are far from clear. The ban on Trump's account was a highly controversial decision, with many arguing that it was an overreach of Twitter's authority as a private company. The settlement may be seen as a tacit admission by X that the ban was unjustified, or it may simply be a pragmatic decision to avoid further legal costs.

The settlement also raises questions about the role of social media companies in regulating online speech. As private companies, Twitter and Meta have the right to set their own rules and guidelines for user behavior. However, the settlements suggest that there may be limits to this authority, and that social media companies may be held accountable for their decisions in the courts.

As the social media landscape continues to evolve, the settlement between X and Trump serves as a reminder of the complex and often contentious relationship between technology companies and political leaders. While Musk's decision to settle the lawsuit may have been motivated by a desire to avoid further controversy, it also highlights the need for clearer guidelines and regulations around online speech and social media moderation.