Context:

The Federal Trade Commission (FTC) is investigating about a dozen advertising and advocacy groups for potential antitrust violations related to coordinating boycotts against advertisers unwilling to have their brands associated with hateful online content. This inquiry includes Media Matters, a liberal organization known for its research on hateful and antisemitic content on social media platforms like X, owned by Elon Musk. Vanessa Otero of Ad Fontes Media confirmed her organization received an FTC letter on May 20 concerning possible collusion. The FTC has requested Media Matters to provide budget documents and communications with other watchdog groups to assess the impact of harmful content on advertisers. Advertisers have been reducing spending on X and other conservative platforms due to concerns about inflammatory content, and Elon Musk has ongoing litigation against Media Matters, accusing it of damaging X's advertiser relationships.

Dive Deeper:

• The Federal Trade Commission is probing whether several advertising and advocacy groups have violated antitrust laws by organizing boycotts of advertisers who do not want their brands associated with hateful content online.

• Media Matters, a liberal advocacy group, is part of the investigation due to its research on antisemitic and hateful content found on X, a social media platform owned by Elon Musk.

• Vanessa Otero, CEO of Ad Fontes Media, reported receiving a letter from the FTC on May 20, demanding details about her organization's business activities in relation to potential collusion allegations.

• The FTC has asked Media Matters to submit budget documents and any communications with other watchdog groups, focusing on how harmful content affects advertisers.

• In recent years, advertisers have reduced or paused their spending on X and similar conservative platforms, driven by fears of being linked to inflammatory content.

• Elon Musk has filed a lawsuit against Media Matters, claiming the organization attempted to harm X's relationships with advertisers, with the case still ongoing.

• The FTC has not provided comments on the investigation due to its policy of maintaining confidentiality on active investigations.