The news: The Federal Trade Commission (FTC) is investigating advertising groups and watchdogs to determine whether they violated antitrust laws through coordinated boycotts, per The New York Times.

• A group of about 12 advertising and advocacy groups allegedly organized the boycott to avoid their brands appearing near hateful content.
• Several organizations have received letters requesting information about business operations relating to an investigation of “possible collusion,” per chief executive of Ad Fontes Media, one of the companies that received a letter.
• FTC chairman Andrew Ferguson claimed the alleged illegal boycott amounts to censorship of conservative voices on social media as advertisers freeze spending on platforms like X.
• Advertisers argue that they should maintain the freedom to choose to spend on platforms that align with their values.

Zooming out: The investigation follows a trend of advertisers facing increased scrutiny about where they choose to spend—and what platforms they choose to avoid.

• Advertisers recently sought dismissal of X’s lawsuit alleging that major brands associated with the World Federation of Advertisers organized a boycott of the platform in violation of antitrust laws after Elon Musk’s 2022 purchase.
• The group argued that “antitrust law does not require advertisers to keep doing business with a platform that degrades the quality of its service” and that politically-motivated advertising decisions are protected by the First Amendment.
• The US House Judiciary Committee also investigated the Global Alliance for Responsible Media (GARM) for limiting conservative content online. GARM ended its operations in response, lacking resources to fight the case.

Why it matters: Advertisers are under pressure to accept a social media landscape that is increasingly filled with controversial or hateful content—or risk legal pushback.