A federal judge has moved to block a Federal Trade Commission (FTC) investigation into media nonprofit Media Matters, following its high-profile legal spat with Elon Musk’s X.
Judge Sparkle L. Sooknanan with the US District Court for DC says the case “presents a straightforward First Amendment violation” and that the FTC’s demands appeared to be a “retaliatory act.” That “should alarm all Americans when the Government retaliates against individuals or organizations for engaging in constitutionally protected public debate,” she says.
In May, the FTC opened an investigation into whether Media Matters had illegally colluded with advertisers, demanding information like its budgets and its communications with other nonprofits. That came after X sued Media Matters over November 2023 research that said ads from high-profile companies were appearing next to antisemitic posts and other offensive content following Elon Musk’s acquisition of Twitter.
The Media Matters research followed months of reports about advertisers fleeing the platform after Musk implemented controversial changes, including cutting back on content moderation and selling access to verified status on the social network. (Musk’s message to those advertisers? “Go fuck yourself.”)
However, Musk and X argued that organizations like Media Matters and the advertisers themselves were to blame rather than the ill-advised changes made to the platform. X also sued a nonprofit ad group representing 150 brands and over 60 advertiser associations for no longer advertising with the company.
FTC Chairman Andrew Ferguson (Photo by Drew Angerer / AFP via Getty Images))
In Friday’s ruling, Judge Sooknanan argues that the FTC case is politically motivated. The sweeping civil investigative demand (CID) issued to Media Matters by FTC Chairman Andrew Ferguson “should have come as no surprise,” the judge says.
“Before President Trump selected him to head the FTC, Mr. Ferguson appeared on Steve Bannon’s podcast, where he said that it is ‘really important that the FTC take investigative steps in the new administration under President Trump’ because ‘progressives’ and others who are ‘fighting “disinformation’ were ‘not going to give up just because of the election,'” the judge says.
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Ferguson also “brought on several senior staffers at the FTC who previously made public comments about Media Matters,” she added.
Plus, prior to the FTC opening an investigation, the Republican attorneys general of Missouri and Texas issued CIDs of their own to Media Matters—”seemingly at the behest of Steven Miller, the current White House Deputy Chief of Staff,” the judge says. Those were “preliminarily enjoined in this Court as likely being retaliatory in violation of the First Amendment.”
Overall, “Media Matters engaged in quintessential First Amendment activity when it published an online article criticizing Mr. Muskand X,” the judge concludes. “And the Court finds that the FTC’s expansive CID is a retaliatory act. There can be no doubt that such a CID would deter a reporter of ordinary firmness from speaking again.”
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Angelo Carusone, Chairman and President of Media Matters, says the ruling “demonstrates the importance of fighting over folding, which far too many are doing when confronted with intimidation from the Trump administration.
“This case is not just about the campaign to punish and silence Media Matters, however. It is a critical test for whether the courts will allow any administration—from any political party—to bully media and non-profit organizations through illegal abuses of power,” he added. “We will continue to stand up and fight for the First Amendment rights that protect every American.”
Musk also sued the Center for Countering Digital Hate (CCDH) after it claimed Twitter failed to crack down on racist, homophobic, and antisemitic tweets, though that was thrown out in March.
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