Judge Says FTC Investigation Into Media Matters ‘Should Alarm All Americans’

A federal judge has granted a preliminary injunction blocking the Federal Trade Commission’s investigation into the left-leaning advocacy group Media Matters.
Back in 2023, Media Matters published research indicating that ads from major companies appeared alongside antisemitic and other offensive content on Elon Musk-owned X. As a result, major advertisers withdrew from the platform, leading X to sue Media Matters. X also sued advertisers and advertiser groups over what it claimed was a ‘systematic illegal boycott.’
After Musk’s then-ally Donald Trump took office again in January, the FTC initiated an investigation into whether Media Matters had illegally colluded with advertisers.
On Friday, Judge Sparkle L. Sooknanan sided with Media Matters, blocking the FTC’s investigation. In her decision, Sooknanan (a district court judge for the District of Columbia appointed by Joe Biden) stated that the Media Matters article represented ‘quintessential First Amendment activity’ and that the FTC’s ‘expansive’ investigative demands seemed ‘a retaliatory act.’
‘It should alarm all Americans when the Government retaliates against individuals or organizations for engaging in constitutionally protected public debate,’ she wrote. ‘And that alarm should ring even louder when the Government retaliates against those engaged in newsgathering and reporting.’
Sooknanan noted that before being appointed as the current FTC chair, Andrew Ferguson had appeared on Steve Bannon’s podcast, calling for an investigation into progressive groups criticizing online disinformation. He subsequently recruited several senior staffers at the FTC, who had previously made public comments about Media Matters.
The FTC did not immediately comment on whether it plans to appeal.
Regardless of the legal outcome, X’s lawsuits have significantly affected the targeted organizations. Media Matters has reduced its staff, with one of its laid-off researchers now running for Congress. Meanwhile, the World Federation of Advertisers shut down its brand safety program and reportedly complained of depleted finances.
Judge Sooknanan concluded that the FTC investigation has had its ‘intended effect,’ urging Media Matters to reconsider pursuing certain stories about the FTC, Chairman Ferguson, and Mr. Musk.