Elon Musk’s X Files Lawsuit Against Twitch for Alleged Advertising Boycott Conspiracy

Elon Musk’s X Expands Lawsuit to Include Twitch in Advertising Dispute

In a significant legal move, Elon Musk’s social media platform, X, has incorporated Twitch into its ongoing lawsuit against the Global Alliance of Responsible Media (GARM). The allegations center on claims that these organizations are conspiring to restrict advertising revenue from the platform, previously known as Twitter.

Background of the Lawsuit

The lawsuit was initially filed in August 2024, asserting that members of GARM had conspired to boycott X, resulting in the loss of potential advertising dollars. Musk’s legal team contends that this coalition has unlawfully worked together to “withhold billions of dollars in advertising revenue,”which significantly impacts the financial health of the platform that Musk acquired in October 2022.

On November 18, 2024, Musk’s X added the Amazon-owned streaming service Twitch to their list of defendants, escalating the legal battle over advertising practices.

Elon Musk is suing Twitch for allegedly conspiring to boycott advertisement on Twitter/X pic.twitter.com/wbzXUoUr2t

— dexerto (@dexerto) November 19, 2024

Allegations Against Twitch

According to a report by Business Insider, X claims that Twitch has failed to engage in advertising on its platform, with no purchases reported within the U.S. since the acquisition. It is noted that Twitch has only allocated a minimal budget for advertising in international markets since November 2022.

As the situation unfolds, both companies have refrained from making public statements regarding the lawsuit, likely due to the ongoing legal proceedings.

Twitch’s Current Challenges

Compounding these legal troubles, Twitch is also facing serious allegations regarding the presence of antisemitism and Islamophobia on its platform. In response to these accusations, Twitch CEO Dan Clancy released a statement on November 1, affirming their commitment to combating hate and harassment in all forms.

In an effort to align with their values, Twitch has implemented new guidelines, including a ban on the term “zionist”when used to harass individuals or groups. However, they clarified that the term remains permissible when discussing the political movement in either a supportive or critical context.

This decision coincides with reports indicating a substantial pullback from major advertisers on Twitch, amidst growing concerns over what some are terming an “adpocalypse” precipitated by controversial actions taken by prominent streamers on the platform.

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