Credit: Andres Siimon via Unsplash
A US government entity is now investigating advertisers who pulled ad spend from Elon Musk’s social media platform, X, formerly Twitter.
Media Matters, a not-for-profit analysing conservative misinformation in the US media, is under investigation by the Federal Trade Commission (FTC), according to multiple reports.
The FTC, in a letter to Media Matters, demands documents relating to communication with a range of advertising bodies, including the World Federation of Advertisers (WFA) and the Global Alliance for Responsible Media (GARM).
The FTC’s chair, Andrew Ferguson, in comments made in December, believes any unlawful collusion between online platforms, and advertiser boycotts which “threaten competition” should be subject to prosecution.
Media Matters’ president, Angelo Carusone, said threats won’t work.
“Our mission continues,” he said in a statement.
“Right-wing media figures holding key posts and abusing government power to target critics are two hallmarks of the Trump administration.”
This is all about the fallout from a brand safety initiative.
X has already taken legal action against the WFA and GARM.
The social media platform argues it was deprived of billions of dollars in advertising revenue.
The WFA discontinuing all GARM activities following the legal challenge.
Advertisers had withdrawn their advertising, over concerns for brand safety, from then Twitter when Musk took the platform private in 2022 and said he would champion free speech by easing content restrictions.
X argues that, in a competitive market, each social media platform would set brand safety standards optimal for its users and that advertisers would select the platforms on which they advertise.
“Social media platforms that select efficient brand safety standards will thrive; platforms that select inefficient standards will lag behind," the lawsuit said.
“Through this competitive process, platforms will discover and adopt the brand safety practices that best promote consumer welfare.
“But collective action among competing advertisers to dictate brand safety standards to be applied by social media platforms shortcuts the competitive process and allows the collective views of a group of advertisers with market power to override the interests of consumers.”
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