FTC will launch an investigation into alleged collusion between advertisers and the social network X following a call for an advertising boycott.

Elon Musk and the “boycott” of X: How regulators are dealing with advertising

*Elon Musk has already threatened his relationships with major advertisers several times, and now the Federal Trade Commission (FTC) is trying to ensure that their refusal to place ads on the platform X does not constitute an anticompetitive conspiracy.*

1. What happened
- Disagreements: After Musk broke contracts with large advertisers, many of them stopped advertising on his social network X.

- FTC reaction: The commission began an investigation to determine whether there was a hidden conspiracy by advertising agencies behind this.

2. Investigation of major players
The FTC has already conducted similar investigations against major advertising groups:

- Publicis Groupe
- WPP
- Dentsu
- Havas
- Horizon Media

The goal is to find out if they refused to cooperate with certain online platforms due to anticompetitive behavior. X is mentioned as one of the affected platforms (according to *The Wall Street Journal*).

3. What a possible agreement looks like
- Pre‑litigation approach: The FTC tries to negotiate with participants so that they agree not to manipulate advertising budgets for political motives.

- Advertiser freedom: Individual companies can place ads where they find convenient and refuse platforms they deem unsuitable.

- No admission of guilt: The agreement does not require the advertising groups under investigation to admit liability.

- Negotiations continue: Until an agreement is reached, the situation remains open.

4. Example from last year
The FTC has already applied similar conditions in deals with the advertising industry:

- Omnicom Group bought Interpublic Group for $13.5 million.

- The agreement included a clause prohibiting manipulation of advertising funds for political purposes.

- Advertisers retained the right to choose platforms at their discretion.

5. Consequences for X and Musk
- After buying Twitter: After Musk acquired the company in late 2022, many advertisers withdrew from placing ads due to concerns about worsening content moderation.

- Lawsuit against advertisers: X filed a lawsuit accusing them of collusion and violating antitrust law.

- Court decision: Last month the court dismissed the suit. The judge recognized signs of a boycott but did not see a violation of antitrust norms.

Conclusion
The FTC continues to monitor that advertisers and the X platform act fairly and without political manipulation. While negotiations are ongoing, it is unclear how the investigation will end, but it is already evident that regulators aim to maintain a balance between advertiser choice freedom and preventing anticompetitive behavior in the digital space.