Ilon Musk adds Twitch to his lawsuit against former advertisers
By ForGeeks Ilon Musk continues his legal fight over X (formerly Twitter), adding Amazon-owned Twitch to his lawsuit against advertising brands that previously partnered with the Global Alliance for Responsible Media (GARM).
On Monday, Twitch was added to X’s lawsuit against GARM members, as reported by Business Insider. In its lawsuit, X alleges that GARM members unlawfully conspired to boycott the platform shortly after Musk acquired Twitter at the end of 2022.
What’s behind the lawsuit
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- Boycott allegations:
X’s lawsuit claims that Twitch has stopped advertising on the platform in the U.S. as of November 2022. X cites a GARM document that the company says contains «executive approval» from Twitch regarding brand safety standards set by GARM. - The progress of the litigation:
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- The lawsuit was filed in August 2023 when X accused GARM of conspiring against the platform and pressuring advertisers to stop working with Twitter.
- After the lawsuit was filed, the World Federation of Advertisers (WFA), which oversaw GARM, dissolved the alliance but said it would defend its position in court.
- Agreements with Unilever:
As a result of the litigation, Unilever was dropped from the lawsuit after entering into an undisclosed agreement with the company.
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Context and next steps
- GARM’s response to X’s actions:
X filed suit shortly after GARM returned the platform to its alliance. One month before the lawsuit was filed, X announced that it had been welcomed back into GARM, fueling tensions between the parties. - Risks to advertising standards:
GARM’s focus on «brand safety standards» may have been one reason advertisers refused to work with X, especially after Musk’s arrival and changes to the platform. - Twitch’s response:
Twitch, as a major player in the online advertising industry, could be an important player in the lawsuit. However, its official stance on the case remains unknown at this time.
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Future Prospects
Despite the breakup of GARM, WFA has vowed to continue fighting in court, which could affect future relationships between platforms and ad alliances. The lawsuit is likely to be a landmark in the interactions between social networks and advertisers, especially in the face of dramatic changes within the big companies.
