FTC investigates Media Matters over claims of ad boycott on X
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.
X and Media Matters locked in legal battle
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 also brings legal fight to advertiser groups
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.
Ella Rae Greene, Editor In Chief
