Twitch Dropped from High-Profile Legal Dispute
Elon Musk’s company X has officially withdrawn Twitch from its ongoing lawsuit over alleged unfair advertising practices. The lawsuit originally accused several companies and advocacy groups of steering advertisers away from X, which was formerly known as Twitter.
By removing Twitch, X may be signaling a shift in its legal strategy, possibly aiming to streamline the case and reduce resistance.
X’s Legal Complaint Centers on Ad Bias
X claimed that organizations and media watchdogs unfairly pressured companies to halt ad spending on its platform. It alleged that Twitch, among others, benefitted from this redirection of ad dollars.
The platform argued that the loss of revenue was a result of a coordinated effort to damage X’s reputation and operations.
Musk Refocuses Legal Strategy
A spokesperson for X declined to provide specific details behind Twitch’s removal from the case. However, sources familiar with the matter suggest it may reflect a decision to concentrate on more active players in the alleged advertising bias.
X continues to battle a decline in ad revenue since Musk’s takeover, and the lawsuit remains part of a broader push to hold certain groups accountable for that decline.
Broader Implications in the Ad Industry
This case reveals growing tensions between social media platforms and advertisers. Many brands remain cautious about where they invest, especially as concerns about content moderation, safety, and public perception increase.
X positions itself as a free speech platform. However, critics argue that its relaxed moderation policies drive away advertisers. Musk has repeatedly claimed that activist groups exaggerate these concerns, hurting the platform’s business.
Removing Twitch doesn’t end the legal battle for Musk’s X, but it does show a tactical pivot. As digital advertising grows more competitive and politicized, platforms like X must balance public image, legal battles, and revenue goals carefully.
