Elon Musk’s platform X (formerly Twitter) has intensified its legal battle by adding Twitch, owned by Amazon, to its lawsuit against members of the Global Alliance for Responsible Media (GARM). The lawsuit accuses GARM members, including Twitch, of conspiring to boycott X shortly after Musk’s acquisition of Twitter in late 2022.
Allegations and Lawsuit Updates
X alleges that Twitch ceased advertising on the platform in the U.S. in November 2022. This action, the lawsuit claims, was influenced by a GARM document containing what X describes as “executive approval” for adhering to the alliance’s brand safety standards. The lawsuit, filed in August 2023, asserts that GARM members pressured advertisers to distance themselves from X.
Following the lawsuit, the World Federation of Advertisers (WFA), which oversaw GARM, dissolved the alliance. However, the WFA has committed to defending its stance in court. Notably, Unilever, initially included in the lawsuit, reached an undisclosed settlement and was subsequently dropped from the case.
Context and Future Implications
Tensions escalated when GARM reinstated X into its alliance shortly before the lawsuit was filed. Critics suggest that GARM’s emphasis on brand safety standards influenced advertisers to avoid X, particularly after Musk implemented changes to the platform’s policies.
Twitch, as a key advertising platform, may play a significant role in this case, but its official position remains unclear, noptes NIX Solutions. The outcome could shape future interactions between social media networks and advertising coalitions, especially as legal battles like this highlight the complexities of maintaining advertiser relationships amidst corporate upheaval.
We’ll keep you updated as this case develops, particularly given its potential to set precedents for the advertising industry.