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FTC Probes Media Matters Over Alleged Role in X Advertiser Boycott

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The U.S. Federal Trade Commission (FTC) has opened an investigation into Media Matters, demanding documents about potential coordination with other watchdog groups accused by Elon Musk of organizing advertiser boycotts targeting X, the social media platform formerly known as Twitter.

According to a document reviewed by Reuters, the FTC issued a civil investigative demand (CID) requesting details about Media Matters’ communications with groups like the Global Alliance for Responsible Media (GARM)—a now-disbanded initiative under the World Federation of Advertisers. Both organizations are also being sued by Musk’s company for allegedly coordinating an illegal boycott of X.

The investigation is focused on whether Media Matters and other entities colluded to pressure advertisers into pulling ad spending from X, which Musk acquired in 2022.

Escalation Under Trump-Era FTC Chair

The probe reflects a shift in priorities under FTC Chairman Andrew Ferguson, appointed by President Donald Trump. In December, Ferguson stated:

“We must prosecute any unlawful collusion between online platforms, and confront advertiser boycotts which threaten competition among those platforms.”

The FTC has not made any formal accusations, and a CID is not an indication of wrongdoing. However, the demand signals that federal regulators are scrutinizing possible anticompetitive conduct in the ad industry amid rising political and legal tensions between progressive media groups and Musk-led platforms.

Media Matters Responds

Angelo Carusone, President of Media Matters, condemned the probe:

“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.”

“These threats won’t work; we remain steadfast to our mission.”

Media Matters is engaged in two legal battles with X—defending itself from a 2023 defamation lawsuit and pursuing its own case accusing X of retaliatory litigation tactics.

Background and Broader Legal Context

  • X sued Media Matters in 2023 for publishing reports that showed major brand ads appearing next to extremist content on the platform.

  • Media Matters countersued, alleging that Musk’s company was trying to silence critical reporting with costly, meritless lawsuits.

  • X also sued the World Federation of Advertisers and major brands in Texas federal court, alleging unlawful conspiracy to limit advertising.

  • The U.S. House Judiciary Committee, chaired by Rep. Jim Jordan, has previously accused GARM of coordinating an illegal group boycott. The initiative was shut down in August 2023.

Market Context

While X has struggled with declining ad revenue since Musk’s takeover, research by Emarketer suggests ad spending could increase in 2025, although it still remains below pre-acquisition levels.

Elon Musk, a major Trump campaign donor, has been publicly vocal about alleged efforts to suppress conservative voices and crypto innovation, while also pushing a broader federal workforce reduction initiative.

U.S. Lawmakers Warn UK: Encryption Backdoor Order to Apple Threatens Global Cybersecurity

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Senior U.S. lawmakers have expressed sharp criticism over the United Kingdom’s order requiring Apple to create a backdoor into its end-to-end encrypted services, warning that such a move could weaken global cybersecurity and violate privacy rights.

What Happened?

  • U.S. House Judiciary Chair Jim Jordan and Foreign Affairs Chair Brian Mast sent a joint letter to UK Home Secretary Yvette Cooper, urging a reconsideration of the order, known as a Technical Capability Notice (TCN).

  • The TCN compels Apple to make encrypted user data accessible to UK authorities, prompting Apple to withdraw its Advanced Data Protection feature in the UK earlier this year.

“Creating a backdoor… introduces systemic vulnerabilities that can be exploited by cybercriminals and authoritarian regimes,” the lawmakers warned.

Key Concerns from U.S. Lawmakers:

  • Global Implications: Because Apple serves users worldwide, any security backdoor would have ramifications for U.S. citizens and others outside the UK.

  • International Law Violation? The lawmakers argue the UK’s TCN may breach the U.S.-UK CLOUD Act agreement, which prohibits orders requiring decryption.

  • Secrecy and Transparency Issues: UK law forbids Apple from disclosing the existence of the order—even to the U.S. Department of Justice, its own home government.

  • Human Rights Risk: The TCN “conflicts with international human rights standards,” they said, citing European Court of Human Rights precedent protecting encryption under the right to privacy.

Apple’s Position:

Apple has consistently refused to build backdoors into its devices, stating that doing so would compromise the security of all users, not just those under investigation. The company is challenging the TCN at the UK’s Investigatory Powers Tribunal.

UK Government Response:

The Home Office maintains that access to individual data would still require a separate judicial warrant, not blanket access. However, critics argue that weakening encryption—even with controls—creates irreparable security risks.