Federal Trade Commission launches investigation into liberal media watchdog Media Matters, probing allegations of collusion with advertisers to harm X platform in what critics see as the Trump administration’s latest action against left-wing organizations.
Key Takeaways
- The FTC has opened an investigation into Media Matters to determine if the liberal advocacy group illegally colluded with advertisers to boycott X (formerly Twitter)
- The investigation follows Elon Musk’s 2023 lawsuit against Media Matters, which alleged the organization manipulated content to drive advertisers away from X
- Media Matters leadership claims the investigation is politically motivated intimidation, while conservatives view it as necessary accountability
- The probe is part of a broader pattern of the Trump administration’s actions against organizations aligned with the political left
- Both X and Media Matters are engaged in ongoing legal battles, with Media Matters having filed a counter-lawsuit accusing X of “libel tourism”
FTC Takes Aim at Media Matters Over Alleged Advertiser Collusion
The Federal Trade Commission has launched a formal investigation into Media Matters for America, examining whether the liberal advocacy organization illegally colluded with advertisers to harm X, the social media platform owned by Elon Musk. The investigation, which began on Wednesday, represents a significant escalation in the ongoing conflict between Musk, a close advisor to President Trump, and the left-leaning media watchdog group. The probe specifically focuses on Media Matters’ research publications that highlighted advertisers’ content appearing alongside antisemitic and other controversial posts on X.
“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.” said by two people familiar with the inquiry
According to sources familiar with the inquiry, the FTC’s letter to Media Matters requested extensive documentation, including budgets, documents related to the impact of harmful online content on advertisers, and communications with other watchdog groups. The investigation comes as part of a broader pattern of actions by the Trump administration targeting organizations aligned with the political left, including previous investigations into ActBlue, a prominent Democratic fundraising platform, and law firms serving Democratic causes.
Musk’s Legal Battle and Media Matters’ Response
The FTC investigation appears to align with concerns raised in Elon Musk’s November 2023 lawsuit against Media Matters. In that lawsuit, Musk alleged the organization deliberately manipulated X’s algorithm to create misleading impressions about the platform’s content, specifically arranging for major brand advertisements to appear alongside extremist content. These publications reportedly led to an exodus of advertisers from X, causing significant financial damage to the platform during a critical period after Musk’s acquisition.
“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.” said by the people
Media Matters, founded in 2004 with the stated mission to counter conservative media narratives, has categorically denied any wrongdoing. The organization raised approximately $20 million in 2023 and has positioned itself as a watchdog holding platforms accountable for harmful content. Angelo Carusone, president of Media Matters, has characterized the investigation as an intimidation tactic rather than a legitimate inquiry into any actual wrongdoing, claiming it represents political retaliation rather than a genuine antitrust concern.
Political Implications and Ongoing Legal Battles
The FTC investigation adds another dimension to the already contentious relationship between the Trump administration and liberal advocacy groups. Under the leadership of Trump appointee Andrew Ferguson, the FTC has expressed concerns about advertiser boycotts and their potential to harm competition in the marketplace. This stance represents a significant shift from previous administrations’ approaches to media watchdog organizations and their relationships with advertisers and platforms.
“Angelo Carusone, the president of Media Matters, suggested that the investigation was an effort to intimidate his group.” – Angelo Carusone
The legal confrontation between Media Matters and X continues to evolve, with Media Matters filing its own lawsuit accusing X of “libel tourism” – a practice of filing defamation suits in jurisdictions with laws favorable to plaintiffs. Meanwhile, X itself remains under FTC supervision following a 2011 settlement over privacy violations, with scrutiny that intensified during the Biden administration. This complex web of legal challenges highlights the increasingly politicized nature of social media regulation and the high stakes involved for all parties.
