A federal judge has granted a preliminary injunction blocking the Federal Trade Commission’s investigation into the left-leaning advocacy group Media Matters.
In 2023, Media Matters published research showing that ads from major companies had appeared alongside antisemitic and offensive content on X, the platform owned by Elon Musk. After major advertisers pulled back from X in response, the company sued Media Matters. X also sued advertisers and advertiser groups, claiming they had engaged in a “systematic illegal boycott.”
When Donald Trump returned to office in January, the FTC launched an investigation into whether Media Matters had illegally colluded with advertisers. However, on Friday, Judge Sparkle L. Sooknanan ruled in favor of Media Matters, blocking the FTC’s investigation.
In her decision, Sooknanan, a district court judge for the District of Columbia appointed by Joe Biden, wrote that Media Matters’ article represented “quintessential First Amendment activity” and that the FTC’s broad investigative demands appeared to be a “retaliatory act.”
She stated, “It should alarm all Americans when the Government retaliates against individuals or organizations for engaging in constitutionally protected public debate. And that alarm should ring even louder when the Government retaliates against those engaged in newsgathering and reporting.”
Sooknanan also noted that before becoming FTC chair, Andrew Ferguson had appeared on Steve Bannon’s podcast and called for the FTC to investigate progressive groups criticizing online disinformation. She pointed out that Ferguson later hired several senior FTC staffers who had previously made public comments about Media Matters.
The FTC has not yet responded to inquiries about whether it plans to appeal the ruling.
Regardless of the legal outcome, X’s lawsuits have already had a major impact on the targeted organizations. Media Matters has cut staff, with one laid-off researcher now running for Congress. Meanwhile, the World Federation of Advertisers shut down its brand safety program and reportedly faced financial strain.
Sooknanan stated that the FTC investigation has also had its “intended effect,” causing Media Matters to avoid pursuing certain stories about the FTC, Chairman Ferguson, and Elon Musk.