FTC On RAMPAGE—Collusion Not Tolerated

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The FTC has launched an investigation into Media Matters for potentially illegal collusion with advertisers to damage X’s reputation, marking a significant shift as the Trump administration targets leftist organizations.

Key Takeaways

  • The Federal Trade Commission is investigating Media Matters for potential illegal collusion with advertisers against Elon Musk’s X platform
  • This investigation follows Elon Musk’s 2023 lawsuit against Media Matters for allegedly manipulating content to damage X’s advertiser relationships
  • The probe is viewed as part of a broader Trump administration effort to scrutinize left-leaning organizations
  • Media Matters President Angelo Carusone has characterized the investigation as an intimidation tactic
  • The FTC has requested extensive documentation including budgets, communications with other watchdog groups, and documents related to Media Matters’ litigation with X

FTC Targets Media Matters in Advertising Collusion Probe

The Federal Trade Commission has opened a formal investigation into Media Matters, a progressive advocacy organization known for monitoring conservative media outlets. The inquiry specifically examines whether the organization illegally collaborated with advertisers to damage X, formerly Twitter, since Elon Musk’s acquisition of the platform. This development represents a significant escalation in the ongoing conflict between Musk and the liberal watchdog group that began when Media Matters published research showing advertisements on X appearing alongside antisemitic content.

“The Federal Trade Commission on Wednesday opened an investigation into Media Matters, a liberal advocacy organization that has published research on hateful and antisemitic content on X, according to two people familiar with the inquiry.” – two people familiar with the inquiry

The investigation emerges as part of President Trump’s broader efforts to address perceived bias against conservative viewpoints in media and tech spaces. Led by Trump appointee Andrew Ferguson, the FTC has expressed specific concerns about organized advertiser boycotts and their potential anti-competitive effects. The agency has requested comprehensive documentation from Media Matters, including organizational budgets, research on harmful online content’s impact on advertisers, communications with other watchdog groups, and materials related to ongoing litigation with X.

Musk’s Legal Battle Against Media Matters

This federal investigation follows Elon Musk’s lawsuit against Media Matters filed in late 2023, which alleged the organization manipulated X’s platform to create misleading representations of advertiser content placement. Musk claimed Media Matters intentionally manufactured scenarios where mainstream advertisements appeared alongside extremist content, then publicized these instances to drive advertisers away from the platform. The lawsuit characterized these actions as a deliberate attempt to undermine X’s business relationships and financial stability following Musk’s implementation of more free speech-oriented content policies.

“The regulator said in a letter sent to the organization that it was investigating the group, which is aligned with Democrats, over whether it illegally colluded with advertisers, according to the people.” – the people

Media Matters has vigorously denied any wrongdoing and has filed its own countersuit accusing X of “libel tourism” – a legal strategy of filing defamation suits in jurisdictions with laws favorable to plaintiffs. The organization has consistently maintained that its research merely documents genuine instances of problematic content placement on the platform. Founded in 2004 by David Brock, Media Matters has built its reputation on challenging conservative media narratives and has become a significant fundraising force for Democratic causes, raising approximately $20 million in 2023 alone.

Political Context and Broader Implications

The investigation into Media Matters fits within a pattern of the Trump administration’s scrutiny of organizations aligned with the political left. Earlier actions have included investigations into ActBlue, a major Democratic fundraising platform, and pressure on law firms representing Democratic causes. For many conservative observers, these efforts represent necessary accountability for organizations perceived as working to silence conservative voices in public discourse through coordinated pressure campaigns targeting advertisers and platforms.

“Angelo Carusone, the president of Media Matters, suggested that the investigation was an effort to intimidate his group.” said by Angelo Carusone

The investigation also creates an interesting regulatory dynamic as X itself remains under FTC supervision following a 2011 settlement over privacy violations. Under the Biden administration, this oversight had intensified, with substantial document requests from the platform. Now, with the regulatory focus shifting to one of X’s most prominent critics, questions arise about potential changes in the government’s approach to social media regulation and free speech issues under President Trump’s administration. The outcome of this investigation could significantly impact the landscape of online content moderation, advertiser relationships with platforms, and the operations of media watchdog organizations.