Games

Elon Musk’s X expands lawsuit to include Twitch over ads boycott conspiracy claims

BBG News

Story Highlights

  • 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.

As a seasoned gamer with decades of experience under my belt, I find myself deeply intrigued by this latest turn of events between Elon Musk’s X (formerly known as Twitter) and Twitch. Being a regular on both platforms, I can’t help but feel like a spectator in a high-stakes game of corporate chess.

Elon Musk’s social media platform, once known as Twitter, has expanded its ongoing legal dispute by including Twitch. The lawsuit alleges that Twitch illegally colluded to withhold ads, resulting in substantial financial losses for the platform, a charge initially leveled only against members of the dissolved 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 accused Twitch (which is owned by Amazon) of ceasing advertising on X in the U.S., and only investing minimal funds for ads in other countries since 2022. This latest move puts Twitch among companies like Mars, CVS Health, and Orsted, all of whom have been charged with stopping ad spending on X.

Elon Musk is suing Twitch for allegedly conspiring to boycott advertisement on Twitter/X

— Dexerto (@Dexerto) November 19, 2024

It’s stated that X alleges these corporations colluded to impose a boycott on X following his takeover towards the end of 2022. The legal action was first initiated in August 2024 and focuses on a GARM document, which indicates Twitch’s support for the alliance’s safety standards. This evidence is being utilized by Musk’s team to fortify their argument. At the same time, it’s worth noting that X is experiencing significant financial difficulties.

In June 2024, reports showed a nearly 40% decrease in ad income during the first half of 2023 under Musk’s management. Big brands like Disney and Apple, withdrew their ads following Musk’s contentious remarks and the platform’s moderation problems. Although some advertisers have resumed, spending is still significantly lower than before the boycott.

In their ongoing legal proceedings, Twitch is simultaneously grappling with issues such as a decrease in user base and stiff competition from platforms like Bluesky and Threads (Instagram’s offerings). It remains to be seen how these circumstances will unfold in the near future, and whether or not the accusations against Twitch for unfair practices are valid. However, no formal response has been made public by Twitch yet.

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2024-11-21 23:11

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