FTC Probes Media Matters Over Alleged Collusion in X Advertiser Boycott

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FTC Probes Media Matters Over Alleged Collusion in X Advertiser Boycott

The U.S. Federal Trade Commission (FTC) has issued a civil investigative demand to Media Matters, requesting documents that could shed light on whether the organization collaborated with other media watchdogs to prompt companies to withdraw advertising from X, the social platform formerly known as Twitter. 

The inquiry specifically seeks communication records between Media Matters and entities that assess disinformation and hate speech, including the Global Alliance for Responsible Media, a project under the World Federation of Advertisers.

This investigation signals heightened federal attention toward claims that advocacy groups may have played a role in encouraging advertisers to abandon X following Elon Musk’s acquisition of the platform in 2022. 

Both Media Matters and the Global Alliance for Responsible Media are currently facing lawsuits from X over these allegations.

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Concerns Over Competitive Fairness and Political Influence

The FTC’s demand compels Media Matters, a progressive organization based in Washington, D.C., to provide all relevant materials produced or received in the course of legal proceedings related to X and advertiser boycotts. 

The Commission has not accused the organization of any wrongdoing, but FTC Chairman Andrew Ferguson previously emphasized the importance of ensuring fair competition in the digital marketplace. 

“We must prosecute any unlawful collusion between online platforms, and confront advertiser boycotts which threaten competition among those platforms,” Ferguson said in an earlier statement.

Angelo Carusone, president of Media Matters, responded critically to the inquiry, saying, “The Trump administration has been defined by naming right-wing media figures to key posts and abusing the power of the federal government to bully political opponents and silence critics.” 

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

Meanwhile, the U.S. House Judiciary Committee, led by Republican Jim Jordan, previously accused the Global Alliance for Responsible Media of orchestrating an unlawful group boycott, prompting the initiative’s shutdown in August.

Though the FTC has refrained from commenting publicly, and the World Federation of Advertisers has not yet responded, the investigation continues. 

Notably, ad spending on X is projected to rise in 2025 for the first time since Musk’s takeover, although still trailing pre-acquisition levels.

In addition to its ongoing legal battle with Media Matters, X filed suit last year against the World Federation of Advertisers and several brands, alleging they conspired to limit advertising on the platform. 

The defendants have sought to dismiss the case, arguing their decisions were motivated by brand safety concerns.

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