Judge blocks FTC inquiry into Media Matters, rules it a 'retaliatory act'

The long-running saga between Elon Musk and liberal watchdog group Media Matters may be winding down. On Friday, a US District Court blocked a Federal Trade Commission investigation into the outlet, which alleged Media Matters had colluded with advertisers and advocacy groups to boycott X.

The FTC inquiry began in May, but its roots go back to a 2023 Media Matters report showing ads on X appearing alongside neo-Nazi and white supremacist content. That story was one of several controversies during the chaotic early months of Musk’s takeover of Twitter, which drove advertisers away en masse. Musk later sued Media Matters, accusing the outlet of deliberately scaring off advertisers.

In June, Media Matters hit back, suing the FTC and claiming it was being unfairly targeted for its 2023 coverage of X. At the time, the group described the inquiry as a "campaign of retribution" orchestrated on behalf of Musk and the Trump administration. Judge Sparkle L. Sooknanan sided with Media Matters, calling the FTC’s sweeping probe “a retaliatory act” that violated the First Amendment. The court’s ruling effectively halts the investigation, though the FTC can still appeal.

“This case presents a straightforward First Amendment violation,” Judge Sooknanan wrote. “Media Matters engaged in quintessential First Amendment activity when it published an online article criticizing Mr. Musk and X. And the Court finds that the FTC’s expansive CID is a retaliatory act.”

As the New York Times points out, the case is part of a broader pattern: the Trump administration has repeatedly targeted left-leaning institutions, from law firms to the fundraising platform ActBlue, alleging fraud or foreign influence.