Media Matters for America sued the Federal Trade Commission yesterday, alleging that the FTC's ongoing investigation into the group "has violated Media Matters' First Amendment rights by retaliating against the organization for its reporting on Elon Musk and X."

"The investigation is the latest effort by Elon Musk and his allies in the Trump administration to retaliate against Media Matters for its reporting on X, the social media site Musk controls, and it's another example of the Trump administration weaponizing government authorities to target political opponents," Media Matters said in a press release. The group said it has suffered financially because of "the cascade of litigation launched by Musk and his allies."

The FTC's investigative demand "makes no secret of its connection to Musk's vindictive lawsuits," and "probes Media Matters' finances, editorial process, newsgathering activities, and affiliations with likeminded entities that monitor extremist content and other third parties," Media Matters said in the lawsuit filed in US District Court for the District of Columbia.

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The Federal Trade Commission is reportedly pitching a merger condition that would forbid advertising agencies from boycotting platforms based on political content, in a move that could benefit Elon Musk's X social network and President Trump's own Truth Social platform.

As the FTC reviews a proposed merger between Omnicom Group and Interpublic Group, two large ad agencies, The New York Times reported yesterday that a "proposed consent decree would prevent the merged company from boycotting platforms because of their political content by refusing to place their clients' advertisements on them, according to two people briefed on the matter."

This is one of several moves the FTC has reportedly made to discourage ad boycotts that have riled conservatives. The FTC currently has only Republican commissioners because President Trump fired both Democrats, who allege in a lawsuit that the firings were illegal. Trump also declared sweeping executive power over the FTC and other agencies that were created to operate independently from the White House.

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European Union regulators are preparing major penalties against X, including a fine that could exceed $1 billion, according to a New York Times report yesterday.

The European Commission determined last year that Elon Musk's social network violated the Digital Services Act. Regulators are now in the process of determining what punishment to impose.

"The penalties are set to include a fine and demands for product changes," the NYT report said, attributing the information to "four people with knowledge of the plans." The penalty is expected to be issued this summer and would be the first one under the new EU law.

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