A federal judge has issued a preliminary injunction stopping the Federal Trade Commission’s investigation into Media Matters, a left-leaning advocacy group.
In 2023, Media Matters revealed that ads from major brands were appearing next to antisemitic and other offensive content on X, owned by Elon Musk. Following the report, many advertisers withdrew from X, prompting X to sue Media Matters. X also pursued legal action against advertisers and groups, alleging an “illegal boycott.”
After Donald Trump assumed office again in January, the FTC launched an investigation into whether Media Matters had unlawfully colluded with advertisers. However, Judge Sparkle L. Sooknanan recently ruled in favor of Media Matters, halting the FTC inquiry. In her decision, Sooknanan, appointed by Joe Biden, stated that the Media Matters article was “quintessential First Amendment activity,” and described the FTC’s demands as “a retaliatory act.”
“It should alarm all Americans when the Government retaliates against individuals or organizations for engaging in constitutionally protected public debate,” she noted, especially concerning newsgathering and reporting.
Sooknanan pointed out that before becoming FTC chair, Andrew Ferguson had appeared on Steve Bannon’s podcast advocating for FTC investigations into progressive critics of online disinformation. Furthermore, he reportedly hired senior staffers who had previously made public comments about Media Matters.
The FTC did not respond immediately to TechCrunch’s query about a potential appeal.
Regardless of the legal outcome, X’s lawsuits have significantly impacted the organizations involved. Media Matters has reduced its staff (one former researcher is now campaigning for Congress), while the World Federation of Advertisers ceased its brand safety program, citing financial strain.
Judge Sooknanan noted that the FTC investigation had its “intended effect,” with Media Matters refraining from pursuing certain stories concerning the FTC, Chairman Ferguson, and Musk.