Federal judge halts FTC probe into Media Matters, citing First Amendment concerns

A federal judge has issued a preliminary injunction stopping the Federal Trade Commission from pursuing its investigation into Media Matters, the media watchdog group. In the court’s view, the probe likely crossed constitutional lines by targeting protected reporting and analysis.

The dispute traces back to 2023, when Media Matters published research indicating that ads from major brands appeared next to antisemitic and other harmful content on X, the platform owned by Elon Musk. Following a wave of advertiser pullbacks, X filed suit against Media Matters and later expanded litigation to include advertisers and industry groups, alleging a coordinated, unlawful boycott.

After a change in administration earlier this year, the FTC opened an inquiry into whether Media Matters improperly coordinated with advertisers. The agency sought extensive documents and communications related to the group’s reporting and interactions with brands.

In granting the injunction, Judge Sparkle L. Sooknanan of the U.S. District Court for the District of Columbia concluded that Media Matters’ reporting amounts to classic First Amendment activity and that the FTC’s sweeping demands appeared retaliatory. The opinion warned that government actions perceived as punishing newsgathering and public-interest reporting raise serious constitutional alarms.

The court emphasized that government retaliation against participation in public debate — especially investigative reporting — is fundamentally at odds with free-speech protections.

The ruling also pointed to the current FTC chair’s prior public comments urging scrutiny of progressive groups that challenge online misinformation narratives, as well as subsequent staffing choices by the Commission, as indicators that viewpoint-based targeting may have influenced the inquiry.

The FTC has not said whether it will appeal the decision.

Whatever happens next, the legal crossfire has already reshaped parts of the media and advertising landscape. Media Matters has reduced staff amid mounting legal pressure, while a prominent advertiser alliance shut down a brand safety initiative and reportedly faced financial strain. The court noted the chilling effect of the FTC’s actions, stating that the inquiry deterred Media Matters from pursuing certain stories about the agency, its leadership, and Musk.

The outcome of this case could carry broader implications for press freedom, brand-safety research, and how watchdogs, advertisers, and social platforms navigate the fraught intersection of monetization and harmful content online.