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22h ago

FTC Investigates Media Matters Over Alleged Advertiser Collusion Targeting Elon Musk’s X

The federal probe seeks documents on Media Matters’ communications with watchdog groups, escalating legal battles over claims of advertiser boycotts and platform governance.

A view of signage at the Federal Trade Commission (FTC) headquarters in Washington, D.C., U.S., November 24, 2024. REUTERS/Benoit Tessier/File Photo/File Photo
A 3D-printed miniature model of Elon Musk and the X logo are seen in this illustration taken January 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
Federal Trade Commission Chairman Andrew Ferguson testifies before the House Appropriations Committee Subcommittee on Financial Services and General Government in the Rayburn House Office Building on May 15 in Washington, DC.
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Overview

  • The Federal Trade Commission (FTC) has launched an investigation into Media Matters, issuing a civil investigative demand for documents related to alleged coordination with other watchdog groups, including the Global Alliance for Responsible Media.
  • The inquiry follows Elon Musk's accusations that Media Matters orchestrated advertiser boycotts to harm X's ad revenue after his 2022 acquisition of the platform.
  • Media Matters published a 2023 report alleging that ads from brands like Apple and IBM appeared next to extremist content on X, prompting an exodus of major advertisers.
  • X has filed lawsuits against Media Matters and the World Federation of Advertisers, claiming defamation and illegal collusion to curtail ad spending on the platform.
  • FTC Chair Andrew Ferguson emphasized the need to address potential group boycotts that could undermine competition, marking a significant shift from private litigation to federal enforcement.