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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.

Elon Musk’s X Lawsuit Against Media Matters Advances to Trial After Texas Judge Denies Dismissal Request

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A federal judge in Texas has ruled that Elon Musk’s X, the social media platform formerly known as Twitter, can proceed to trial in its lawsuit against the media watchdog group, Media Matters. U.S. District Judge Reed O’Connor denied a request from Media Matters to dismiss the lawsuit, clearing the way for the case to be heard in court with a trial date set for April 7.

X’s lawsuit stems from a report published by Media Matters in November, which claimed that advertisements from major brands such as Apple, IBM, and Disney were appearing alongside hateful content on the platform. Following the report, several of these companies suspended their advertising campaigns on X, prompting the lawsuit. X’s legal team has accused Media Matters of fabricating the report to mislead advertisers, alleging that the publication had a financial motive in its portrayal of the platform and its content.

X’s attorneys argue that Media Matters’ report was not only misleading but also intentionally deceptive, causing financial harm to the platform by driving away advertisers. They claim the publication was designed to damage X’s reputation and undermine its advertising revenue. As a result, X is seeking damages from Media Matters and two of its staff members, accusing them of contributing to the financial losses incurred by the platform due to the paused advertising campaigns.

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Media Matters, however, has dismissed the lawsuit as “frivolous.” Angelo Carusone, the president of Media Matters and one of the defendants in the case, stated that the lawsuit was an attempt by Musk to intimidate critics and suppress their freedom of speech. Carusone argued that the legal action was part of a broader effort by X to silence media outlets that scrutinize its practices.

Judge O’Connor’s decision marks a significant victory for X, allowing the platform’s claims to be heard in court. In his ruling, O’Connor stated that X had sufficiently detailed its case, justifying its claims against the media watchdog. This is not the first time O’Connor has been involved in legal disputes surrounding X and its operations. Earlier this year, the judge dismissed a separate attempt by Media Matters to compel Musk to disclose Tesla’s involvement in the case, rejecting the argument that Tesla had a direct financial stake in the outcome.

In another legal matter, O’Connor recently recused himself from an antitrust lawsuit filed by X against a global advertising association and its member companies, including Unilever, Mars, and CVS Health. His recusal followed the disclosure that he held investments in Unilever, which prompted questions of a potential conflict of interest.

As the trial approaches, it will bring further attention to the ongoing legal battles Musk’s platform faces, particularly surrounding its efforts to balance free speech and advertising on its platform.