The US Federal Trade Commission (FTC) is asking for documents from media organizations linked to claims that they collaborated with other watchdog groups to encourage advertisers to boycott X, the platform previously known as Twitter, following Elon Musk’s acquisition in 2022. This request, detailed in a Civil Investigation Demand reviewed by Reuters, aims to gather information on communications regarding misinformation and hate speech across news and social media, particularly involving the Global Alliance of Responsible Media, also referred to as the Global Advertiser Initiative. Meanwhile, X is currently engaged in lawsuits against these entities.
The investigations indicate that the US government is examining whether these media groups played a role in prompts that led to advertisers retracting their ad spending on X post-Musk’s takeover. As part of this inquiry, the FTC is seeking all documents created or received by Media Matters, a liberal advocacy group based in Washington, D.C., in connection with lawsuits concerning the boycotts.
FTC Chairman Andrew Ferguson, who was appointed by Donald Trump, pointed out that a potential investigation could take place in December. He stressed the importance of addressing illegal conspiracies among online platforms and pushing back against advertiser boycotts that could harm competition.
Additionally, the U.S. House Judiciary Committee, led by Republican Jim Jordan, criticized the Global Alliance of Responsible Media for facilitating boycotts against certain groups last year. This initiative was disbanded in August.
An FTC spokesperson did not provide any comments on the matter. Meanwhile, both Media Matters and the World Federation of Advertisers have yet to respond to requests for their viewpoints.
It’s important to note that this demand for documents does not imply any fraudulent activity, and investigations may not always lead to enforcement actions. According to the research firm Emarketer, ad spending on X is projected to rise for the first time in 2025, post-Musk’s acquisition, although this increase is still below pre-takeover levels. Musk, who is a significant contributor to Trump’s 2024 presidential campaign, is also working on initiatives aimed at reducing the federal workforce.
Last year, X filed a lawsuit against a consortium of major brands in the World Federation of Advertisers along with federal courts in Texas, claiming they illegally colluded to diminish advertising investments. The group is now seeking to have the case dismissed, arguing that these advertisers opted for other platforms due to concerns regarding X’s approach to brand safety.
Currently, Media Matters and X are embroiled in legal battles across federal courts in Texas and California. In 2023, X sued Media Matters, alleging that the group defamed it by publishing an article that associated far-right extremist content with X’s posts. Media Matters has refuted these claims and has countersued, describing X’s lawsuit as abusive, expensive, and unwarranted, aiming to penalize the group for its reporting on advertising on the platform following Musk’s takeover. They claim that defending against X’s allegations has cost them millions.
