FTC nearing ad‑boycott settlements

The Federal Trade Commission told a federal appeals court on April 13 that it is negotiating settlements in its advertiser-boycott probe, even as another appeals panel signaled it may curb part of that same investigation. (bloomberg.com) (courthousenews.com) At the U.S. Court of Appeals for the District of Columbia Circuit, an agency lawyer said the Federal Trade Commission was discussing antitrust settlements with targets of the probe into alleged coordinated advertiser pullbacks from online platforms, including Elon Musk’s X. The lawyer said the agency would update the court when the commission takes action. (bloomberg.com) In a separate hearing the same day, the same court’s judges pressed the agency over its civil investigative demand to Media Matters, a nonprofit that reported in 2023 that ads on X appeared next to antisemitic and white nationalist content. Judges Patricia Millett and Gregory Katsas questioned whether forcing the group to turn over notes, editorial records and finance documents could inflict a First Amendment injury before any enforcement case is filed. (courthousenews.com) A civil investigative demand is the Federal Trade Commission’s version of a subpoena. The Media Matters fight matters because the agency says the demand is part of a broader antitrust inquiry, while Media Matters says it is retaliation for journalism about extremist content on X. (ftc.gov) (courthousenews.com) The investigation grew out of claims that advertisers and industry groups coordinated to withhold spending from X after Musk bought Twitter in 2022 and loosened some moderation policies. Federal Trade Commission Chairman Andrew Ferguson had publicly called for the agency to confront advertiser boycotts that threaten competition among platforms before the probe reached court. (ftc.gov) (courthousenews.com) One target was the World Federation of Advertisers and its Global Alliance for Responsible Media, a brand-safety initiative created in 2019 after the Christchurch massacre to keep ads away from harmful content online. The federation said in August 2024 that it would discontinue the initiative after X sued and the litigation drained its resources. (wfanet.org) (campaignlive.com) X filed its own antitrust suit in Texas in August 2024 against the federation and several advertisers, alleging a “group boycott” that cost the company billions in ad revenue. On March 26, 2026, Senior U.S. District Judge Jane Boyle dismissed that case, ruling X had not adequately pleaded an antitrust violation. (courthousenews.com 1) (courthousenews.com 2) The Federal Trade Commission’s own docket shows the agency opened petitions-to-quash matters involving Media Matters and the World Federation of Advertisers under the same matter number, 251 0061. The World Federation of Advertisers petition is dated January 22, 2026, and the Media Matters order denying its petition to quash is dated July 25, 2025. (ftc.gov 1) (ftc.gov 2) Media Matters sued the agency in Washington on June 23, 2025, and a district judge later blocked the demand while the case proceeds. The appeals court has not ruled yet, but Monday’s hearing suggested at least some judges think the commission cannot force a news organization to wait for an enforcement action before raising a constitutional challenge. (courtlistener.com) (courthousenews.com) The next step is split between court and agency: the District of Columbia Circuit must decide whether the Media Matters demand can stand, and the commission must decide whether any settlement terms in the wider boycott probe are acceptable. Both decisions will shape how far the Federal Trade Commission can go in policing coordination claims around online advertising. (courthousenews.com) (bloomberg.com)