Elon Musk’s X sues Twitch of conspiring to boycott advertising on the platform

Elon Musk’s X, formerly Twitter, has filed a lawsuit against Twitch, accusing the Amazon-owned platform of participating in a conspiracy to withhold advertising revenue.

This legal action is part of a broader lawsuit filed in August 2024 against the Global Alliance for Responsible Media (GARM), alleging that its members collectively boycotted X and caused billions in losses.

The lawsuit claims Twitch drastically reduced ad spending on X in the U.S., making no significant purchases since Musk’s acquisition of the platform in late 2022. Documents cited in the lawsuit indicate Twitch endorsed GARM’s brand safety standards, which X presents as evidence of coordinated efforts to limit advertising.

The move comes amidst Twitch’s own controversies, including claims of antisemitism and Islamophobia, which have led to a reported “adpocalypse” as advertisers distance themselves from the platform. X, which also faces declining ad revenue due to concerns over content moderation, views the lawsuit as a crucial step in reshaping its business model and recovering lost income.

This legal battle could have wide-reaching implications for digital advertising, particularly concerning collective alliances like GARM and their impact on platforms’ ad revenues.