Elon Musk’s social media platform, X (formerly Twitter), has filed a lawsuit against Twitch, alleging that the streaming service and other companies conspired to boycott advertising on X.

The amended complaint, initially filed in August, accuses members of the Global Alliance of Responsible Media (GARM) of illegally coordinating to withhold substantial advertising revenue from X.

The lawsuit claims that companies such as Mars, CVS Health, Ørsted, and Twitch significantly reduced or halted their advertising on X since late 2022.

This action allegedly violated U.S. antitrust laws by restricting the free flow of advertising dollars.

Following the lawsuit, GARM ceased operations, citing resource constraints.

The legal action reflects X’s ongoing struggle to revive its advertising business post-Musk acquisition, as ad revenue has significantly declined due to controversial decisions and statements deterring advertisers.

Despite speculations of potential settlements, X continues its legal battle, aiming to address the alleged coordinated boycott and restore its advertising revenue streams. Some advertisers have begun returning to the platform, possibly influenced by Musk’s rising political influence, but overall ad revenue remains below pre-acquisition levels.

The case is being heard in the Northern District of Texas, with neither Twitch nor Amazon responding to the allegations at this time. vv

The outcome of this lawsuit could have significant implications for the advertising strategies of major companies and the financial stability of social media platforms.

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