Judges will suspend FTC inquiries related to X ad repulsion

A federal judge suspended the Federal Trade Commission’s investigation into media issues and issued a temporary order to prevent agencies from filing lawsuits while the lawsuit unfolds.

In 2023, the left-leaning watchdog reported that ads from major brands were appearing next to anti-Semitism and other unfavourable posts about X, Elon Musk’s social networks. Many large advertisers then frozen their spending on the platform. X complained of media issues. The company has also filed lawsuits against several advertisers and industry groups, alleging “systematic illegal boycotts.”

After Donald Trump returned to the White House in January, the FTC began reviewing whether media was illegally coordinated with advertisers. The agency requested records related to group reporting and outreach to the brand.

According to a report by TechCrunch, US District Judge Sparkle L. Sooknanan on Friday was ally in media issues, putting the FTC’s efforts on hold, and concluded that the organization is likely to win the First Amendment claim.

Souknannan, a Biden appointee in the District of Columbia U.S. District Court, wrote that the Media Matters article is “a typical First Amendment activity,” and that it calls for the FTC’s “spread” demand “retaliation law.”

In her ruling, she added, “When the government retaliates against an individual or an organization for engaging in constitutionally protected public debate, all Americans should be on alert, and when the government retaliates against those engaged in newspaper savings and reporting, that alert should be heard even louder.”

She also referred to comments by Andrew Ferguson even before he became the chair at the FTC, urging the scrutiny of progressive groups criticizing online disinformation as he looked at Steve Bannon’s podcast, saying that he “bringed several senior staff at the FTC who previously published public comments about media comments.”

Media Issues Layoff and WFA Returns in X’s Lawsuit

Regardless of how the lawsuit progresses, X’s court strategy has already changed the environment of the target entity. Media issues have reduced staff. Currently, one displaced person is running for Congress. The World Federation of Advertisers reportedly shut down its brand safety initiative and reportedly warned its members about financial tensions.

On Thursday, WFA told members it was a “cancellation” activity for the global alliance of responsible media after X filed antitrust laws against the group earlier in the week. WFA CEO Stephan Loerke said in an email seen by Business Insider that Garm is a nonprofit with limited resources, saying the move was “not made lightly.” He said he is confident that the WFA and Garm fight the X claim in court and that the case “showns full compliance with the rules of competition in all of our activities.”

The memo came two days after X filed a lawsuit in Texas court. Garm participants are working together to “reduce billions of dollars of advertising revenue” from Twitter, now known as X.

Souknanan further said that the FTC’s investigation produced “intended effects” and that media issues “opposed the pursuit of a specific narrative about the FTC, Chairman Ferguson and Musk.”