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FTC investigates Media Matters regarding claims about Elon Musk’s X boycott

The Federal Trade Commission is seeking documents from Media Matters concerning collaboration with other media watchdogs. These groups are reportedly helping Elon Musk orchestrate advertiser boycotts of X, previously known as Twitter, due to various media issues.

A Civil Investigation Demand, obtained by Reuters, requests details about communications with other organizations involved in monitoring misinformation and hate speech across news and social media platforms. This includes the Global Advertiser Initiative, also referred to as the Global Alliance of Responsible Media. Meanwhile, X is currently pursuing ongoing lawsuits against these organizations.

This move illustrates the increased scrutiny from the US government regarding whether Media Matters played a role in encouraging advertisers to pull their funding from X after Musk’s acquisition of the social media platform in 2022.

The FTC is specifically requesting all documents that Media Matters— a liberal advocacy group based in Washington, DC—has created or received in relation to the advertiser boycotts linked to the litigation involving X.

FTC Chairman Andrew Ferguson, who was appointed by President Trump, mentioned the possibility of an investigation back in December.

“We have to take action against illegal conspiracies between online platforms and resist advertiser boycotts that could harm competition among those platforms,” Ferguson stated in an address regarding unrelated matters.

Last year, the House Judiciary Committee, led by Republican Jim Jordan, accused the Global Alliance of Responsible Media of coordinating illegal group boycotts. This initiative was closed in August.

An FTC representative chose not to comment on the matter. Similarly, neither Media Matters nor the World Federation of Advertisers responded immediately to requests for their input.

The inquiry does not imply any certainty of wrongdoing, and not all investigations lead to enforcement actions by the FTC.

According to research firm Emarketer, ad spending on X is projected to rise for the first time in 2025 since Musk’s takeover in 2022, though it’s still below the levels seen pre-acquisition. It’s worth noting that Musk is a significant donor to Trump’s 2024 presidential campaign and promotes initiatives aimed at reducing the federal workforce.

Last year, X initiated legal action against several major brands within the World Federation of Advertisers, accusing them of unlawfully conspiring to cut ad spending.

The group is now asking a judge to dismiss the case, arguing that these advertisers turned to alternative platforms due to concerns regarding X’s commitment to maintaining brand safety.

Currently, Media Matters and X are engaged in legal battles across federal courts in both Texas and California.

In 2023, X filed a lawsuit against Media Matters, claiming the major advertisers defamed it in an article that allegedly showcased extreme far-right content alongside X’s posts.

Media Matters has denied these allegations, stating that X’s suit is abusive, costly, and aimed at punishing their reporting on advertising issues after Musk’s takeover. They also claim defending against X’s accusations is financially burdensome.

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