In a bold legal maneuver, X Corp., the social media giant formerly known as Twitter, has escalated its fight against what it calls a coordinated advertising boycott. Twitch, the Amazon-owned livestreaming platform, is the latest target added to X’s August lawsuit, alongside a growing list of major companies accused of conspiring to choke the platform’s revenue streams.
The lawsuit accuses Twitch and other entities, including CVS, Unilever, and Mars, of conspiring through the Global Alliance for Responsible Media (GARM). X Corp. alleges this alliance, under the umbrella of the World Federation of Advertisers (WFA). At the heart of X’s argument is its belief that this collective action was not driven by legitimate business concerns, but by a calculated effort to harm X in response to controversial changes in content moderation policies under Elon Musk’s ownership.
Musk’s ownership of X has been marked by contentious decisions, including the relaxation of content moderation rules, which some advertisers argue led to their ads appearing next to harmful or offensive content. In a separate lawsuit, X also targeted Media Matters, alleging the watchdog group misrepresented its practices to further discourage advertisers.
Twitch’s Role in the Alleged Boycott
Business Insider reports that Twitch stopped advertising on X in late 2022, citing brand safety concerns. X’s latest filing argues that this decision was not isolated, but part of a broader conspiracy facilitated by GARM, which sets advertising guidelines to protect brands from being associated with inappropriate content.
GARM, notably, disbanded shortly after the original lawsuit was filed, raising questions about its role and the motivations of its member organizations. Critics of X’s legal strategy argue it’s an attempt to shift focus away from declining ad revenue and user trust.
On the other side, GARM and its members maintain their commitment to ethical advertising practices, emphasizing the need for platforms like X to take accountability for their content ecosystems.
With billions of dollars at stake, the case could set a precedent for how digital platforms and advertisers navigate brand safety, antitrust laws, and free speech in the era of social media dominance. X’s fight against Twitch and other advertisers is shaping up to be one of the most high-profile antitrust battles of the year. As the case unfolds, it will test the resilience of alliances like GARM.
