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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.

Spain’s Deputy PM Yolanda Diaz Withdraws from Elon Musk’s X Platform

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Spanish Deputy Prime Minister and Labour Minister Yolanda Diaz announced her decision to leave Elon Musk’s social media platform, X, citing concerns over the platform’s algorithmic influence and Musk’s recent behavior during President Donald Trump’s inauguration-related events.

Key Points:

  • Diaz’s Decision: Yolanda Diaz explained her withdrawal from X, emphasizing her refusal to be part of a platform that promotes xenophobic ideas, undermines human rights, and supports the far-right.
  • Musk’s Actions: Diaz’s move followed criticism of Elon Musk’s behavior at an event tied to Trump’s inauguration, where Musk’s arm gesture was controversially compared to a Nazi salute. While Musk dismissed the allegations, the Anti-Defamation League described the gesture as an awkward moment of enthusiasm.
  • Broader Political Reactions: Other members of Diaz’s left-wing Sumar party also plan to cease using X for personal and political posts. The Spanish government clarified that Diaz’s decision was personal, with each minister free to choose their preferred digital platforms.
  • European Shift: Diaz’s departure follows similar moves from German ministries and UK universities, which have distanced themselves from X amid growing concerns over the platform’s direction under Musk’s ownership.

Spain Says Social Media Platforms Must Be Neutral, Not Interfere in Political Affairs

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The Spanish government emphasized that social media platforms should remain neutral and avoid interference in the political matters of other nations. This statement came after Elon Musk, CEO of X (formerly Twitter), made controversial comments regarding a report on foreign nationals jailed for rape in Spain.

Spokesperson Pilar Alegria addressed the issue on Tuesday, responding to a question about Musk’s involvement in Spanish politics. She affirmed that platforms should act with “absolute neutrality” and refrain from influencing political discussions. This remark follows a public spat between Musk and European leaders, including UK opposition leader Keir Starmer and French President Emmanuel Macron.

Musk, who is poised to advise President-elect Donald Trump, made headlines on Sunday when he commented “Wow” while reposting an article from the account Visegrad24. The article, originally published by the Spanish newspaper La Razon, detailed rape convictions in Catalonia, revealing that 91% of those convicted were foreigners. Musk’s repost and comment sparked a political debate in Spain.

The data highlighted by the article, referencing figures from Catalan authorities, indicated that out of the 24 people convicted or on remand for rape charges in the region, 22 were non-Spanish citizens. The article, published in late September 2023, drew significant attention to the composition of crime among foreign nationals.

Catalonia’s Socialist regional leader, Salvador Illa, responded by condemning Musk’s actions without directly naming him. “We can’t allow democracy to fall into the hands of tech billionaires allied with the far right,” Illa declared at an event in Barcelona, underscoring that Catalonia’s name should not be used to spread “hate speech.”

In contrast, Spanish Prime Minister Pedro Sanchez rejected any connection between immigration and crime rates. Sanchez, who has faced criticism from the far-right party Vox for his immigration policies, reiterated that “foreigners are neither better nor worse than Spaniards” when it comes to criminality. He also pointed out that Spanish crime rates have remained stable or even declined in recent years, with a 2023 Interior Ministry report concluding that immigration does not significantly impact crime levels.