Elon Musk's X Sues Amazon-Owned Twitch For Not Advertising
The lawsuit, originally filed in August, has already seen one settlement.
By Sukhbir Cheema — 21 Nov 2024, 02:50 PM
Elon Musk's X, formerly known as Twitter, has intensified its legal battle against former advertisers by targeting Twitch
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.
The lawsuit, originally filed in August, has already seen one settlement, with Unilever quietly removed after reaching an undisclosed agreement with X
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.
Although some advertisers have returned following Donald Trump's election victory, spending remains significantly lower than pre-boycott levels
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.
