The U.S. Federal Trade Commission (FTC) has launched a formal investigation into Media Matters for America, a prominent media watchdog, to determine whether it coordinated with other advocacy groups to pressure advertisers into pulling ads from Elon Musk’s social media platform, X (formerly known as Twitter). This development marks a significant escalation in regulatory scrutiny of the ongoing advertising wars that have surrounded the platform since Musk’s acquisition.
A civil investigative demand obtained by Reuters reveals that the FTC is requesting internal documents and communications from Media Matters.
The agency is specifically probing potential coordination between Media Matters and organizations like the Global Alliance for Responsible Media (GARM), an initiative once run by the World Federation of Advertisers, which X has also taken to court.
The core of the investigation lies in whether these groups orchestrated an unlawful group boycott that led to a sharp decline in advertising revenue for X.
The FTC’s inquiry aligns with previous statements by Chairman Andrew Ferguson, who was appointed by former President Donald Trump. Ferguson has emphasized the importance of prosecuting anti-competitive behavior online, particularly boycotts that hinder fair competition between social media platforms.
Elon Musk, who acquired X in 2022, has filed multiple lawsuits claiming that Media Matters and GARM defamed his platform and intentionally pressured advertisers to withdraw their business.
One high-profile case filed by X in Texas accuses a coalition of brands and organizations of conspiring to cut ad spend—damaging X’s revenue and reputation. While Media Matters and others deny wrongdoing, they’ve filed countersuits, claiming X is using the legal system to intimidate and silence watchdogs.
Advertising on X, according to research firm Emarketer, is expected to rebound slightly in 2025 for the first time since Musk’s takeover. However, it still lags behind pre-acquisition levels. Despite the lawsuits and controversies, Musk remains defiant, continuing to champion his free-speech-first approach and claiming censorship by what he sees as politically motivated organizations.
Media Matters, based in Washington, D.C., has long been known for its progressive advocacy and critical reporting on misinformation and hate speech online.
In 2023, the group published a report claiming that ads from major brands appeared next to extremist content on X. Musk’s response was swift—he sued Media Matters, alleging the group manipulated data to misrepresent his platform.
The legal battle has since spread across federal courts in Texas and California, with no immediate resolution in sight. Media Matters alleges that fighting Musk’s lawsuits has cost it millions of dollars and accuses him of abusing the legal process to retaliate against unfavorable coverage.
While an FTC investigation doesn’t confirm wrongdoing, it does signal that U.S. regulators are taking the conflict seriously. If any illegal collusion is found, it could have major implications for both advocacy groups and advertisers navigating the murky waters of brand safety and platform politics.
As the legal and regulatory dust settles, one thing is clear: the battle over who controls the digital narrative—and who profits from it—is far from over.
