Elon Musk's X Sues Amazon-Owned Twitch For Not Advertising

According to Business Insider, the Amazon-owned livestreaming platform has been added to X's lawsuit against brands once affiliated with the now-disbanded Global Alliance for Responsible Media (GARM).

The case alleges that GARM members colluded to initiate an advertising boycott in late 2022, shortly after Musk's acquisition of Twitter.  

X claims Twitch ceased US advertising on its platform in November 2022, citing a GARM document indicating Twitch's endorsement of the coalition’s brand safety standards.

Meanwhile, the World Federation of Advertisers (WFA), which oversaw GARM, has vowed to contest X's allegations in court.  

While Musk's company remains embroiled in legal battles, X is grappling with declining ad revenue and user engagement.

Internal documents revealed a 40% revenue drop in the first half of 2023 under Musk's leadership.

The situation worsened after Musk's controversial remarks in November 2023, prompting major brands like Disney and Apple to pull their advertising. 

Compounding these issues, reports show a decline in X's daily active user base across key markets, including the US and EU.

As users flock to alternative platforms like Bluesky and Threads, X's future as a viable advertising platform appears increasingly uncertain.  

Regardless of the lawsuit’s outcome, the challenges facing X highlight a company struggling to regain its footing amid a rapidly evolving digital landscape. Whether Musk's bold legal strategy can reverse these trends remains to be seen.