FTC and Media Matters settle legal battle over X advertising boycott probe
A legal dispute between the Federal Trade Commission (FTC) and Media Matters has come to an end. The settlement follows months of litigation after the FTC sought information from the media watchdog group as part of an investigation into an advertising boycott targeting Elon Musk’s X.
The case began when Media Matters challenged the FTC’s demand, arguing it was an act of retaliation for its reporting on antisemitic content on the platform. In August 2023, a federal judge granted Media Matters a preliminary injunction, blocking the FTC’s investigative demand. Judge Sparkle L. Sooknanan ruled that government retaliation against newsgathering raised serious concerns. The FTC later appealed this decision, with oral arguments taking place last month.
The lawsuit was officially dismissed on Tuesday, with both sides agreeing to cover their own legal costs. As part of the settlement, the FTC confirmed that Media Matters is not a target of any investigation. The agency also agreed not to reissue or introduce a substantially similar demand against the organisation.
Separately, the FTC dropped its investigative demand against NewsGuard, another media group involved in the same inquiry. The original probe centred on an advertising boycott of X, following reports about extremist content on the platform. Media Matters had accused the FTC of punitive action in response to its journalism, a claim the agency denied. The resolution means Media Matters will not face further FTC demands related to the X boycott investigation. The FTC has also withdrawn its request for information from NewsGuard. The case highlights ongoing tensions between regulatory scrutiny and press freedom in the US.
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