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US FTC to investigate Media Matters after Elon Musk's Twitter ad boycott claims

US FTC to investigate Media Matters after Elon Musk's Twitter ad boycott claims

Time of India23-05-2025

The
US Federal Trade Commission
(FTC) has demanded documents from non-profit watchdog
Media Matters
regarding possible coordination with other media watchdogs, a report claims. These groups were accused by
Elon Musk
of helping orchestrate
advertiser boycotts
of his
social media platform X
(earlier Twitter). The civil investigative demand, seen by the news agency Reuters, seeks information about Media Matters' communications with other organisations that evaluate
misinformation and hate speech
in news and social media. This includes the
Global Alliance for Responsible Media
, an initiative by the
World Federation of Advertisers
. Currently, X has ongoing lawsuits against both Media Matters and Global Alliance for Responsible Media.
According to a report by the news agency Reuters, the probe represents an escalation in government scrutiny. It aims to determine if groups like Media Matters assisted advertisers in coordinating efforts to withdraw ad spending from X after Musk acquired the social media site in 2022.
What documents FTC has demanded from Media Matters
The request covers all materials that the Washington, DC–based liberal advocacy organisation has created or obtained for its X lawsuit concerning advertiser boycotts. FTC Chairman Andrew Ferguson, who was appointed by US President Donald Trump, also flagged the possibility of an investigation back in December 2024.
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In a statement on an unrelated case, Ferguson said: 'We must prosecute any unlawful collusion between online platforms, and confront advertiser boycotts which threaten competition among those platforms.'
Meanwhile, in a statement to Reuters, Media Matters President Angelo Carusone said that 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. 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.'
Last year, the House Judiciary Committee, led by Republican Jim Jordan, accused the Global Alliance for Responsible Media of orchestrating an illegal group boycott; that initiative was shut down in August 2024.
While the FTC's investigative demand isn't proof of misconduct, it highlights heightened scrutiny, though not all probes lead to enforcement. Despite a modest rebound in ad spending on X projected for 2025, levels remain below their pre-Musk peak.
In 2023, X sued the World Federation of Advertisers and major brands for allegedly conspiring to curb ad buys and Media Matters for defamation after the group highlighted ads appearing next to extremist content.
Media Matters retaliated with its own lawsuit, claiming X filed 'abusive, costly and meritless lawsuits' to silence its reporting, a legal battle that has already cost the nonprofit millions.
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