TECH NEWS – After “the advertising apocalypse,” Twitch faces yet another challenge: a complaint from Elon Musk. The businessman has filed a lawsuit on behalf of X against the Amazon-owned platform, accusing it of organizing an ad boycott.
Bad news keeps piling up for Twitch, a situation that’s becoming all too familiar these days. Amazon’s streaming platform has been hit with another issue—this time, courtesy of Elon Musk. The owner of X has added Twitch to a list of companies accused of boycotting ads. At a time when Twitch is said to have lost up to 70% of its advertisers, this complaint couldn’t come at a worse time.
Elon Musk vs. Twitch
To understand the context, we need to go back to last August, when Elon Musk filed a lawsuit against several companies, accusing them of withholding ads. Filed on behalf of X, the lawsuit targeted the Global Alliance for Responsible Media (GARM), claiming it was attempting to boycott the social network. Back then, Twitch wasn’t part of the list of accused companies, but as of November 18, it has been added.
Although many details remain confidential due to the ongoing legal process, the lawsuit alleges that these companies may have persuaded certain brands not to invest in X, formerly Twitter.
Avoiding speculation, it’s undeniable that this complaint comes at a challenging time for Amazon’s platform, which is grappling with an “advertising apocalypse.” Brands have reportedly pulled sponsorships due to streamers increasingly discussing political topics. Streamer Asmongold has been singled out for his controversial opinions, though the issue extends beyond any one creator. Supporting Musk’s actions, Asmongold stated, “He should go as far as he can,” adding during a livestream, “I know a lot of people hate Elon, but I hope the biggest evil of companies acting collectively like cartels is already apparent. Antitrust laws exist for a reason.”
Twitch, for its part, has remained silent. However, the platform has attempted to address its advertising issues by introducing a new category, which seems to have only made things worse. Changes implemented during the U.S. election cycle have led to some streamers losing income, especially those using tags related to countries like Iran or Venezuela.
Source: 3djuegos
