Judge Blocks FTC Probe Into X’s Ad Controversy—Regulators Left Fuming

A federal judge just slammed the brakes on the FTC's investigation into X's advertising practices—throwing regulators into chaos.

Behind the gavel: The ruling exposes the FTC's shaky legal footing as it targets Big Tech. No fines, no penalties—just a judicial smackdown.

Why it matters: X's ad algorithms remain a black box. Critics say they prioritize engagement over ethics (surprise—another tech giant monetizing outrage).

The finance twist: Wall Street barely blinked—turns out 'regulatory risk' was already priced in at $0.02 per share. Efficient markets, folks.

Media Matters layoffs and WFA pulls back amid X litigation

Regardless of how the litigation proceeds, X’s courtroom strategy has already altered the environment for the entities it targeted. Media Matters has cut staff; one displaced researcher is now running for Congress. The World Federation of Advertisers shut down a brand-safety initiative and reportedly warned members about financial strain.

On Thursday, the WFA told members it was “discontinuing” activities for its Global Alliance for Responsible Media after X filed an antitrust case against the group earlier in the week. In an email seen by Business Insider, WFA CEO Stephan Loerke said the MOVE was “not made lightly,” noting that GARM is a nonprofit with limited resources. He said the WFA and GARM will fight X’s allegations in court and are confident the case will “demonstrate our full adherence to competition rules in all our activities.”

That note came two days after X filed suit in a Texas court, alleging that GARM participants worked together to “collectively withhold billions of dollars in advertising revenue” from Twitter, now called X. The complaint also identifies several GARM participants, including Unilever, Mars, CVS, and Ørsted.

Sooknanan further wrote that the FTC’s inquiry produced its “intended effect,” saying Media Matters chose “against pursuing certain stories about the FTC, Chairman Ferguson, and Mr. Musk.”

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