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FTC investigates Media Matters over claims of ad boycott on X

Karah Rucker (Reporter)
The FTC launched an investigation into Media Matters, demanding documents on whether the group coordinated with others to pressure advertisers to leave X.
Image credit: FTC investigates Media Matters over claims of an ad boycott on X
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Summary

FTC investigation

The Federal Trade Commission has begun an investigation into Media Matters for America, requesting documents to determine if the organization coordinated with others, such as the World Federation of Advertisers, to prompt advertisers to leave X, the platform owned by Elon Musk.

Legal disputes

X and Media Matters are involved in ongoing legal actions. In 2023, X sued Media Matters for defamation over claims about ad placement near extremist content, which Media Matters denied. Media Matters has filed a countersuit, alleging that X’s lawsuits are intended to punish its reporting.

Advertising trends

Despite ongoing litigation and advertiser concerns reported in the article, research firm Emarketer projects that advertising spending on X is expected to rise in 2025 for the first time since Musk’s acquisition.

Full story

The Federal Trade Commission launched an investigation into Media Matters for America, demanding documents that could reveal whether the liberal advocacy group coordinated with others to pressure advertisers into abandoning X, the social media platform owned by Elon Musk. The civil investigative demand, obtained by Reuters, asks Media Matters to provide communication records with other related groups such as the World Federation of Advertisers.

Government scrutiny rises after Musk’s acquisition

This move signals escalating scrutiny from the U.S. government into allegations that watchdog groups may have collaborated to orchestrate advertiser boycotts following Musk’s 2022 acquisition of the social media platform. FTC Chairman Andrew Ferguson previously warned against such practices in December.

“We must prosecute any unlawful collusion between online platforms, and confront advertiser boycotts which threaten competition,” Ferguson said in a statement unrelated to this case.

The House Judiciary Committee, led by Republican Rep. Jim Jordan, echoed those concerns in 2024, accusing the Global Alliance of running an illegal group boycott. The Global Alliance disbanded in August.

Media Matters pushes back

Media Matters has pushed back against the allegations. President Angelo Carusone called the FTC’s actions political and part of a pattern by President Donald Trump’s allies to arm the federal government.

“It’s clear that’s exactly what’s happening here, given Media Matters’ history of holding those same figures to account,” Carusone said. “These threats won’t work; we remain steadfast to our mission.”

A spokesperson for the FTC has not responded to reports of its investigation. The World Federation of Advertisers also did not respond as of this publication.

Though the FTC’s inquiry does not imply any finding of wrongdoing, it adds legal and financial pressure to a years-long standoff involving Media Matters, X, and major advertisers.

In 2023, X sued Media Matters, alleging defamation over a report claiming ads from leading brands were next to extremist content on the platform. Media Matters denied the claims and filed a countersuit, accusing X of launching meritless lawsuits to punish its reporting. The group says legal defense has cost it millions.

X has also taken legal action against the World Federation of Advertisers and several companies in Texas, claiming illegal collusion to cut ad spending. Those groups are seeking to dismiss the case, arguing that brands independently chose to distance themselves from X due to “concerns over brand safety.”

Despite the ongoing litigation, advertising spending on X is projected to rise in 2025 for the first time since Musk’s acquisition, according to research firm Emarketer.

Devin Pavlou (Digital Producer) contributed to this report.
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Why this story matters

An investigation by the Federal Trade Commission into Media Matters for America over alleged coordination to pressure advertisers away from X raises important questions about regulatory oversight, legal disputes between advocacy groups and tech platforms, and the role of watchdog organizations in influencing digital advertising practices.

Regulatory investigation

The FTC's inquiry highlights government scrutiny of potential collusion and competitive practices in digital advertising environments.

Legal battles

Ongoing lawsuits between X, Media Matters, and advertiser organizations illustrate the complex and contested nature of accountability and free expression in online spaces.

Advertiser influence

The involvement of advocacy groups and advertisers in decisions to support or withdraw from digital platforms demonstrates the significant power these stakeholders have in shaping the online media landscape.

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Synthesized coverage insights across 34 media outlets

Context corner

The situation is set against heightened U.S. political polarization and ongoing debates about free speech, media accountability, and government oversight. The use of government agencies to probe organizations critical of the administration recalls previous cycles of politicized investigations, with each party alleging misuse of regulatory bodies for political gain. These dynamics are influencing perceptions of the current investigation.

History lesson

Historically, government investigations into media organizations or advocacy groups have been controversial, often raising concerns about press freedom and potential political influence. Previous cases, such as congressional probes into alleged bias or collusion, have set precedents for legal pushback and First Amendment debates. The trend of targeting watchdogs is not new but remains contentious in the public discourse.

Policy impact

The investigation could set precedents for how government agencies scrutinize interactions between advocacy groups and advertisers, particularly regarding allegations of coordinated boycotts. Outcomes may influence future enforcement around brand safety, ad placement, and online speech, affecting how media watchdogs operate and how social media platforms govern content and advertising relationships.

Sources

  1. Reuters

Bias comparison

  • Media outlets on the left frame the FTC investigation into Media Matters as a politically motivated assault orchestrated by Trump allies and Elon Musk to silence a progressive watchdog, employing emotionally charged terms like “vendetta,” “stoking fears of retribution,” and depicting Musk and the administration as retaliatory forces targeting free speech.
  • Media outlets in the center maintain a more detached tone—highlighting the legal complexities and advertiser concerns without adopting partisan rhetoric—the left and right sharply diverge in their portrayal of intent and legitimacy, reflecting broader ideological and cultural conflicts over media influence and free speech.
  • Media outlets on the right emphasize Media Matters’ “far-left” identity and “plot” to “silence dissenting voices,” framing the probe as a justified crackdown on supposed illegal collusion aimed at undermining Musk’s platform.

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Media landscape

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Key points from the Left

  • The Federal Trade Commission has begun an investigation into Media Matters for America regarding possible illegal collusion with advertisers, as stated in a letter dated May 20.
  • Elon Musk has sued Media Matters for defamation after it reported antisemitic content on X, claiming the group influenced advertisers to leave.
  • Angelo Carusone criticized the investigation as part of President Donald Trump's attempts to silence critics.
  • The inquiry coincides with claims of a political agenda against Media Matters, with Carusone asserting that these actions reflect a pattern of bullying opponents.

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Key points from the Center

  • The Federal Trade Commission sent Media Matters a document request on May 20, to investigate alleged collusion to pull advertising from Elon Musk's platform X.
  • The probe follows lawsuits and accusations from Musk claiming that Media Matters and ad groups coordinated advertiser boycotts causing revenue loss since he bought Twitter in 2022.
  • Media Matters denies wrongdoing, says the lawsuits punish their reporting on X’s rise in hateful content, and argues that spending cuts result from X’s own actions and content moderation changes.
  • In December, FT C Chair Andrew Ferguson emphasized the importance of taking legal action against any illegal cooperation between digital platforms and addressing advertiser boycotts that could undermine competitive dynamics within the industry.
  • The investigation marks increased government scrutiny but does not indicate proof of wrongdoing, and advertisers continue to express concerns about X's content and management since Musk’s acquisition.

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Key points from the Right

  • The Federal Trade Commission has opened an investigation into Media Matters regarding claims it coordinated advertiser boycotts against X, owned by Elon Musk, as reported by Reuters.
  • Media Matters President Angelo Carusone stated that the Trump administration has historically targeted their group and claimed, "These threats won't work; we remain steadfast to our mission."
  • The FTC's demands include records of Media Matters' communications with other groups about misinformation and hate speech, according to a civil investigative demand.
  • X has previously sued Media Matters and the World Federation of Advertisers, alleging a conspiracy to harm its advertising revenue, with both parties denying the claims.

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Sources

  1. Reuters