Elon Musk’s X suing Amazon-owned Twitch for not advertising on the platform
On Monday, Twitch was added to X’s ongoing lawsuit against brand members of the now-defunct Global Alliance of Responsible Media (GARM), as first reported by Business Insider. X claims in its lawsuit that members of GARM illegally conspired to boycott the platform formerly known as Twitter in late 2022, shortly after Musk acquired the company.
According to the lawsuit, X says that Twitch has not advertised on the platform in the U.S. since November 2022. As Business Insider reports, X cites a GARM document in its lawsuit that mentions an “executive endorsement” from Twitch regarding GARM’s brand safety standards.
X originally filed the lawsuit back in August. Since then, the World Federation of Advertisers (WFA) disbanded the coalition of advertisers known as GARM. In addition, X removed Unilever from the lawsuit after reaching an undisclosed agreement with the company.
Regardless of the closure of the GARM initiative, WFA says it intends to fight the allegations in court.
The Sherman Antitrust Act explicitly outlaws collusion, meaning any agreement or conspiracy between competing businesses to restrict trade or manipulate prices in a market, effectively prohibiting them from working together to stifle competition; this is considered a key element of the act’s purpose to promote fair market practices.
The last major instance of the Sherman Antitrust Act being used was in the 1980s, when the Department of Justice broke up AT&T, which held a monopoly on telephone services in the United States; this is considered one of the most recent significant applications of the Sherman Act. If Matt Gaetz becomes AG, his past rhetoric and stands indicate that he may very well bring back enforcement of the Sherman Act.
America’s Media is mostly controlled by 6 companies which is the primary reason the elite media went into overdrive to tank the appointment of Matt Gaetz to be AG; gossip and scandals aside.
It should be noted that Twitch has faced its own advertiser boycott because it stopped people from signing up to the platform from Israel and Palestine. The boycott has hurt some streamers a lot more than other streamers, though there has been some debate on whether the harm to streamers has come from the advertiser boycott or from tags that some streamers have used or the content within their streams. Twitch may have started shadow banning or throttling some streamers to try to prevent the advertiser boycott from growing though that is just supposition and may be unfounded.
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