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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.

FTC Drops Microsoft–Activision Blizzard Case, Ending Challenge to $69 Billion Merger

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The U.S. Federal Trade Commission (FTC) has formally dropped its legal case against Microsoft’s $69 billion acquisition of Activision Blizzard, bringing a definitive end to one of the most high-profile antitrust challenges in the gaming industry.

The FTC announced Thursday that it would not pursue further legal action, citing that continuing the case was “not in the public interest.” The decision comes after the agency lost an appeal on May 7 to block the deal, which officially closed in 2023.

The acquisition—the largest in gaming history—gives Microsoft control over blockbuster franchises such as Call of Duty, World of Warcraft, and Candy Crush, solidifying its dominance in both console and cloud-based gaming.

Shifting Priorities Under New FTC Leadership

FTC Chairman Andrew Ferguson, recently appointed by President Donald Trump, is redirecting the agency’s focus toward matters aligned with the current administration’s priorities. This includes:

  • A probe into advertiser collusion on Elon Musk’s X platform (formerly Twitter), as first reported by Reuters.

  • Ending legacy antitrust efforts, including a price discrimination case against PepsiCo, also dropped Thursday.

This pivot marks a departure from the aggressive antitrust posture of Ferguson’s predecessor, Lina Khan, who launched the Activision challenge over concerns that Microsoft might use the acquisition to suppress competition in the gaming sector—particularly via Xbox exclusivity and its Game Pass subscription service.

Microsoft’s Response

In a statement, Microsoft President Brad Smith praised the FTC’s decision, calling it:

“A victory for players across the country and for common sense in Washington, D.C.”

Microsoft has repeatedly argued that the merger will benefit consumers, pledging to keep popular titles like Call of Duty available across platforms, including Sony’s PlayStation.

Background and Legal Outcome

Though the FTC initially failed to secure a preliminary injunction to halt the deal before closing, it retained the option to pursue a post-closing trial in July 2025 aimed at unwinding the acquisition. That option is now off the table.

The deal had already secured regulatory approval in the EU and U.K., the latter after Microsoft agreed to restructure parts of the acquisition, such as cloud gaming rights.

With the FTC now stepping aside, the merger’s legal battles appear fully resolved, cementing Microsoft’s expanded position in the global gaming industry.

Hacker Breach of TeleMessage Exposes Communications Across U.S. Government

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A hacker who breached TeleMessage, a secure communications platform used by U.S. officials — including former Trump national security adviser Mike Waltz — accessed a broad range of messages from multiple government agencies, according to a Reuters investigation. The breach has significantly expanded the scope of concern over data security in the Trump administration and beyond.

The leaked data, obtained by nonprofit transparency group Distributed Denial of Secrets, revealed intercepted communications involving over 60 unique U.S. government users, including:

  • Disaster responders

  • Customs and Border Protection officials

  • U.S. diplomats

  • Secret Service members

  • A White House staffer

  • FEMA and financial sector personnel

The messages, spanning a roughly 24-hour period ending May 4, included discussions related to travel logistics for senior U.S. officials, such as a group labeled “POTUS | ROME-VATICAN | PRESS GC,” likely linked to preparations for a presidential visit. Another appeared to discuss a trip to Jordan involving U.S. personnel.

While Reuters did not identify any classified or overtly sensitive information, experts caution that the metadata alone — including who was talking to whom, when, and in what context — poses a serious counterintelligence risk.

“Even if you don’t have the content, that is a top-tier intelligence access,” said Jake Williams, a former NSA cyber expert, now at Hunter Strategy.

Waltz and Previous Signal Controversy

The breach of TeleMessage, which modifies secure apps like Signal to meet federal archiving requirements, drew attention after Mike Waltz was photographed using the platform during a Cabinet meeting on April 30. While no messages directly linked to Waltz have surfaced in the leak, his previous misuse of Signal — including inadvertently adding a journalist to a chat discussing real-time air raids on Yemen — led to his removal as national security adviser. He was later nominated to serve as U.S. ambassador to the United Nations.

Unclear Scope, Ongoing Investigations

The extent of the breach remains under investigation. The platform, owned by Smarsh, a Portland, Oregon-based digital communications firm, was taken offline on May 5 “out of an abundance of caution.” Smarsh has not responded to media inquiries.

Affected agencies include:

  • Department of Homeland Security

  • State Department

  • Centers for Disease Control and Prevention (CDC)

  • Federal Emergency Management Agency (FEMA)

  • Customs and Border Protection (CBP)

While some agencies downplayed the risk or claimed no confirmed compromise, others are still conducting internal reviews. The Cybersecurity and Infrastructure Security Agency (CISA) has since advised all users to cease use of the platform unless further mitigation steps are provided.

Key Questions Unanswered

Neither Waltz nor the White House has publicly addressed how or why TeleMessage was used or whether any guidelines were breached. The use of such platforms — designed to balance privacy, security, and legal compliance — now faces renewed scrutiny amid the apparent ease with which the hacker penetrated multiple layers of sensitive communications.

The incident adds to a growing list of cyber breaches targeting U.S. institutions in recent years, raising alarm about the resilience of federal communications systems in a time of heightened geopolitical risk and digital espionage.