FTC investigates media watchdog over Musk's X boycott claims, document shows

a year ago

The US Federal Trade Commission (FTC) has requested documents from Media Matters regarding potential coordination with other media watchdogs accused by Elon Musk of orchestrating advertiser boycotts of X.
The FTC's civil investigative demand seeks information on Media Matters' communications with groups evaluating misinformation and hate speech, including the Global Alliance for Responsible Media (GARM).
X has ongoing lawsuits against both Media Matters and GARM, escalating government scrutiny over advertiser boycotts following Musk's acquisition of the platform.
FTC Chair Andrew Ferguson emphasized the need to investigate unlawful collusion and advertiser boycotts threatening platform competition.
The US House Judiciary Committee, led by Jim Jordan, previously accused GARM of coordinating an illegal group boycott, leading to its shutdown in August 2023.
X's advertising revenue is projected to rise in 2025 for the first time since Musk's takeover but remains below pre-acquisition levels.
X has sued the World Federation of Advertisers and major brands, alleging illegal conspiracy to reduce ad spending, while Media Matters countersued, claiming meritless litigation.
Media Matters denies defamation allegations from X and argues Musk's lawsuits aim to punish critical reporting on X's advertising practices.

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