Elon Musk’s platform, X, now targets Amazon’s Twitch in a growing legal fight. The lawsuit began in August 2023 and blames some members of the now-dissolved Global Alliance of Responsible Media (GARM) for causing a boycott by advertisers. This boycott has hurt X’s earnings a lot.
X claims that Twitch and others in GARM worked together to damage its ad deals. Papers in the lawsuit mention that Twitch stopped advertising on X in the U.S. after November 2022, soon after Musk bought the platform. They say GARM had a document showing Twitch’s support for strong brand safety rules.
The World Federation of Advertisers (WFA) used to manage GARM. It has agreed to face X’s claims in court. X has already settled quietly with Unilever, which was another accused party.
X faces big problems with ads because income dropped sharply under Musk’s leadership, going down 40% in early 2023 compared to last year. Major companies like Disney and Apple stopped advertising due to Musk’s statements and controversial content on the platform. Trouble for ads. Serious trouble.
Efforts to attract advertisers back have mixed outcomes. Sensor Tower, an analytics company, says spending from X’s top 100 advertisers is still 64% less than late 2022, even though there were small increases recently. The platform fights to find its financial balance again.
X also deals with fewer users. Reports show fewer daily users in important places like the U.S. and Europe. New platforms such as Threads and Bluesky are gaining users unhappy with Musk’s leadership.
As X keeps fighting against Twitch and other GARM members in court, it feels pressure to fix its structural and image problems. This case might affect how X attracts advertisers and its role in the digital world.
Elon Musk’s X stands at a critical point. The case against Twitch shows the bigger troubles of winning back advertisers and users. As legal battles continue, the platform’s future might depend on finding new income and stopping user loss. If X fails to change, it probably faces more financial and image damage in the social media world.
