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Media Matters Sues to Block FTC Probe Over Musk's X Boycott Claims

CIO Insider Team | Tuesday, 24 June, 2025
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A progressive media watchdog has initiated legal action against the Federal Trade Commission, claiming that it is under investigation as a form of retaliation for its reporting on extremist content on the social media platform X.

Media Matters stated in the lawsuit filed in federal court in Washington that appointees from the White House in the FTC were attempting to penalize the organization on behalf of Elon Musk, owner of X, who recently had a significant role in the Trump administration.

Last month, the FTC informed Media Matters that it was launching an investigation into whether the organization’s reporting on X constituted illegal collaboration with advertisers.

“The Court must put a stop to the latest attempt by the Trump Administration and government allies of Elon Musk to punish, intimidate, and harass Media Matters for publishing content they disagree with,” the organization stated.

In November 2023, Media Matters reported that advertisements were showing up alongside pro-Nazi posts on X. The lawsuit claimed that Musk “threatened a ‘thermonuclear’ lawsuit against Media Matters—and his governmental supporters quickly joined in.”

Two later investigations by attorneys general in Missouri and Texas, which Media Matters argues were also retaliatory, were dismissed by federal judges on the grounds of the First Amendment.

Neither the White House nor the FTC provided immediate comments in response to inquiries from POLITICO.

Media Matters asserted that the federal investigation is part of a larger trend of politicization within the agency under the current administration.

Media Matters stated in the lawsuit filed in federal court in Washington that appointees from the White House in the FTC were attempting to penalize the organization on behalf of Elon Musk, owner of X, who recently had a significant role in the Trump administration.

“The Trump Administration has launched investigations into former officials who have criticized the President,” the lawsuit stated. “Additionally, it has targeted various sectors of civil society regarded as disloyal: universities, cultural institutions, public radio, and other media organizations.”

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In March, Trump dismissed the FTC’s two Democratic members, Alvaro Bedoya and Rebecca Kelly Slaughter, breaking with decades of tradition. The agency now has three commissioners, all of whom are Republicans. The lawsuit noted that several key leaders within the agency have publicly opposed both Media Matters and the advertiser boycotts that impacted X.

Those mentioned in the complaint include FTC Chair Andrew Ferguson and commissioners Mark Meador and Melissa Ann Holyoak.

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The organization also indicated that the administration’s investigation has caused a chilling effect on its reporting, hindering staff from covering Musk’s ties to Trump and the connections between right-wing media and the FTC.



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