• The FTC is investigating Media Matters for claims related to advertiser boycotts of X.
• Documents sought include communications with other watchdog organizations.
• This marks a significant escalation in scrutiny of media influences on advertising.
• Elon Musk accused these groups of orchestrating campaigns to pull ads from X.
• Media Matters has countered by filing its own lawsuits alleging defamation and harassment.

The U.S. Federal Trade Commission (FTC) has issued a civil investigative demand to Media Matters for documents related to potential coordination with other media watchdogs. These groups have been accused by Elon Musk of helping to orchestrate advertiser boycotts against X, the social media platform that was formerly known as Twitter. This probe represents a notable escalation in U.S. government scrutiny of whether such organizations contributed to advertisers withdrawing their financial support following Musk's acquisition of the platform in 2022, according to HuffPost, India Times, Channel News Asia, and Reuters.

The FTC's request encompasses all materials that Media Matters, a liberal advocacy group, has generated or dealt with concerning lawsuits relating to advertiser boycotts of X. The commission is particularly interested in Media Matters' interactions with groups that assess misinformation and hate speech in digital media, including the Global Alliance for Responsible Media, according to HuffPost, India Times, Channel News Asia, and Reuters.

This investigation started as the FTC, driven by its chairman Andrew Ferguson, emphasized the need to confront any unlawful collusion among online platforms that threaten competition. Ferguson's stance reflects the heightened regulations and scrutiny facing X and associated parties. Previously, the U.S. House Judiciary Committee accused the Global Alliance for Responsible Media of coordinating an illegal group boycott, a claim that led to the initiative's shuttering in August, as reported by HuffPost and India Times.

Advertiser spending on X is expected to see an increase by 2025, marking the first recovery since Musk's acquisition, although it still remains well below levels prior to his takeover. Concurrently, X has been embroiled in its legal battles against both Media Matters and the Global Alliance, having filed defamation suits against Media Matters for reporting that highlighted ads adjacent to far-right extremist content, according to HuffPost, India Times, Channel News Asia, and Reuters.

In response, Media Matters has labeled X's legal actions as abusive and financially burdensome, alleging that the organization has incurred significant costs to defend itself from what it terms meritless lawsuits, as highlighted by HuffPost and India Times.