Elon Musk's X Sparks FTC Probe Into Media Matters Over Ad Boycott Coordination With Watchdog Groups: Report

The Federal Trade Commission has launched an investigation into Media Matters for America, escalating scrutiny over alleged coordination with watchdog groups to orchestrate advertiser boycotts against Elon Musk's social platform, X.

What Happened: The FTC issued a civil investigative demand seeking documents related to Media Matters’ communications with other organizations that monitor misinformation and hate speech, including the Global Alliance for Responsible Media, an initiative under the World Federation of Advertisers, reported Reuters, citing documents.

Both groups are currently facing lawsuits from X.

The probe focuses on whether Media Matters helped facilitate ad pullbacks after Musk acquired Twitter (now X) in 2022. The watchdog has denied wrongdoing, calling the FTC's actions politically motivated, according to the report.

FTC Chairman Andrew Ferguson, a President Donald Trump appointee, signaled in December that the agency would pursue "unlawful collusion" between online platforms and advertisers. The House Judiciary Committee previously accused the Global Alliance of organizing an illegal group boycott. That initiative was dissolved in 2023.

See Also: Jamie Dimon, Who Once Said Trump Was ‘Right About Some Of China,’ Now Reportedly Appears To Be Siding With Xi Jinping Amid Washington-Beijing Tensions

Why It Matters: The FTC's inquiry coincides with X’s expanded antitrust lawsuit against major advertisers — including Nestlé, Abbott, and Colgate-Palmolive, alleging coordinated efforts to suppress ad spending. The outcome could set new precedents for how advertisers and platforms interact.

Media Matters President Angelo Carusone said, “These threats won’t work; we remain steadfast to our mission.” Meanwhile, concerns over platform bias persist: visibility for several X users dropped after they publicly criticized Musk, prompting questions over free speech enforcement.

Ad revenue on X is expected to rebound in 2025, but remains below pre-Musk levels, per Emarketer, the report noted.

Image Via Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.