- X has accused Twitch in its lawsuit of conspiring to withhold ad revenue.
- X claims these companies worked together to boycott X shortly after his acquisition in late 2022.
- No official statement has come out from Twitch regarding the same.
Elon Musk’s social media platform, X (formerly known as Twitter), has added Twitch to its ongoing legal battle. The lawsuit accuses Twitch of illegally conspiring to withhold ads causing significant revenue losses for X, which was previously only against the members of the now-defunct Global Alliance of Responsible Media (GARM).
Amidst the lawsuit against Twitch, X is also facing a drop in ad revenue
On November 18, 2024, X specifically named Twitch, alleging the Amazon-owned platform stopped advertising on X in the U.S. and spent only minimal amounts in other countries since 2022. With this recent development, Twitch joins a list that includes Mars, CVS Health, and Orsted, all accused of halting ad spending on X.
X claims these companies worked together to boycott X shortly after his acquisition in late 2022. Initially filed in August 2024, The lawsuit highlights a GARM document suggesting Twitch’s endorsement of the alliance’s brand safety standards, a claim Musk’s team is using to build its case. Meanwhile, X’s financial struggles are also a troubling fact.
Reports back in June 2024 indicated a nearly 40% drop in ad revenue during the first half of 2023 under Musk’s leadership. Major brands, including Disney and Apple, pulled their ads after Musk’s controversial statements and the platform’s moderation issues. While some advertisers have returned, spending remains significantly lower than pre-boycott levels.
As X battles in court, the platform also faces challenges with declining user numbers and competition from platforms like Bluesky and Threads from Instagram. Although no official statement has come out from Twitch, we’ll need to see how this will progress in the coming days, and confirm if Twitch has really played foul as per the allegations.
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