X Corp., the company formerly known as Twitter, has escalated its legal battle against what it calls an "illegal boycott" of its platform by adding live-streaming platform Twitch as a defendant. The move is part of X's broader antitrust lawsuit targeting organizations and companies that allegedly withdrew advertising from the platform, resulting in significant revenue losses. Previously, X owner Elon Musk accused these advertisers of engaging in a conspiracy to undermine the social media company through a coordinated boycott.
According to a recent report by Reuters, X amended its lawsuit in a Wichita, Texas federal court to include Twitch, a subsidiary of Amazon. The addition stems from Amazon's decision to stop its advertising on X in late 2022—shortly after Musk's takeover of the platform. This period was marked by major shifts and controversies, leading several companies to reconsider their presence on X. In the lawsuit, X contends that this widespread advertiser pullout constitutes an unlawful effort to damage its business.
Twitch Joins a Growing List of Defendants
With Twitch now in its sights, X has expanded its list of defendants that already includes key industry organizations like the World Federation of Advertisers (WFA) and the Global Alliance for Responsible Media (GARM). These groups have been singled out by X for allegedly orchestrating an organized effort to convince brands to suspend or withdraw their advertising campaigns. Musk has described this legal action as a fight against what he believes is a targeted campaign to deprive X of "billions of dollars" in advertising revenue.
The lawsuit reflects Musk's stated intent to hold companies accountable for what he perceives as a calculated effort to boycott and financially harm his social media platform. X's legal filing demands a jury trial and signals that the company is prepared to pursue the matter without accepting settlements from defendants.
Controversies and Fallout
Elon Musk's outspoken online persona has played a central role in the advertising challenges faced by X. Under his ownership, the platform has seen a surge in controversial content, including what critics describe as unchecked anti-Semitic rhetoric. This led many major advertisers to distance themselves from the platform, citing brand safety concerns. While some companies paused their advertising campaigns, others permanently ended their partnerships with X, compounding the financial toll on the company.
The impact of these advertising decisions has been profound. X's ad revenue has reportedly suffered significant losses, prompting Musk to adopt a combative stance against those he deems responsible. In August, X filed its initial lawsuit against the WFA and GARM, accusing them of conspiring to disrupt its revenue stream. The inclusion of Twitch underscores the expansive nature of X's legal strategy as it seeks to address what it views as a multi-pronged assault on its business.
What Lies Ahead
The ongoing lawsuit could set a critical precedent in the intersection of social media platforms and advertising partnerships. As X pushes forward with its claims, both sides are preparing for potential court proceedings that may offer a clearer picture of the motivations and tactics at play. For now, X's legal battle illustrates a broader struggle over control, influence, and accountability in the digital advertising landscape.
