FTC Probes Media Matters Over Musk's X Boycott Claims

The U.S. Federal Trade Commission (FTC) has issued a civil investigative demand to Media Matters, seeking documents related to potential coordination with other media watchdogs, including the World Federation of Advertisers’ Global Alliance for Responsible Media (GARM), accused by Elon Musk of orchestrating advertiser boycotts against X. 

The demand, reported by Reuters Thursday, requests all documents Media Matters has produced or received in X’s ongoing lawsuits against the group and GARM, focusing on communications about advertiser boycotts following Musk’s 2022 acquisition of the platform, formerly Twitter.

The probe, led by FTC Chairman Andrew Ferguson, a Trump appointee, escalates scrutiny into whether groups like Media Matters, a Washington, D.C.-based liberal advocacy organization, collaborated to reduce ad spending on X. Ferguson previously signaled interest in investigating such boycotts, stating in December that the FTC must address “unlawful collusion” threatening platform competition. The U.S. House Judiciary Committee, chaired by Rep. Jim Jordan, also accused GARM of coordinating an illegal boycott, leading to GARM’s shutdown in August 2024.

Media Matters President Angelo Carusone called the probe an abuse of power by the Trump administration to silence critics, vowing to continue the group’s mission. The FTC and World Federation of Advertisers declined to comment. An investigative demand does not confirm wrongdoing, and not all FTC probes lead to enforcement.

X’s advertising revenue is projected to rise in 2025, per eMarketer, but remains below pre-Musk levels. X has sued Media Matters and GARM in Texas federal court, alleging defamation and illegal conspiracy to curb ad spending, respectively. Media Matters denies the claims, countersuing X for filing meritless lawsuits to punish its reporting on X’s ad placements near extremist content. The legal battles, ongoing in Texas and California, have cost Media Matters millions in defense.