A United States court has blocked the Federal Trade Commission (FTC) from continuing its investigation into Media Matters, a media watchdog that has clashed with Elon Musk’s social media platform, X. The case stems from a dispute dating back to 2023, when Media Matters published research showing that advertising on X appeared alongside neo-Nazi and antisemitic content.
The revelations prompted a significant advertiser exodus from the platform, leading X to file a lawsuit against the nonprofit. The company accused Media Matters of deliberately producing “side-by-side images depicting advertisers’ posts on X Corp.’s social media platform beside Neo-Nazi and white national fringe content” to damage its reputation.
In May this year, the FTC launched its inquiry, examining whether Media Matters may have broken antitrust rules by working with advertisers and advocacy groups to organise a boycott of X. The watchdog group responded the following month by filing a lawsuit against the FTC, alleging that the investigation was retaliatory and designed to silence criticism.
Media Matters claims free speech retaliation
Media Matters argued that the federal investigation was linked to its previous reporting, which highlighted how extremist material had spread on X since Musk took control of the platform formerly known as Twitter. In its complaint, the group said: “The Federal Trade Commission seeks to punish Media Matters for its journalism and speech in exposing matters of substantial public concern — including how X.com has enabled and profited from extremist content that proliferated after Elon Musk took over the platform.”
Judge Sparkle L. Sooknanan agreed with this position, issuing a preliminary injunction in favour of the nonprofit. The judge described the FTC’s action as “a retaliatory act” and ruled that Media Matters was “likely to succeed on its First Amendment retaliation claim.”
Her decision also highlighted the potential chilling effect on journalists and advocacy groups. She noted that the probe had already discouraged the organisation from pursuing certain stories, writing: “Indeed, the FTC’s [investigation] has had its intended effect.” According to the filing, Media Matters decided against reporting further on the FTC, its chair, Lina Khan, and Musk as a direct result of the inquiry.
Broader legal battles continue
Following the ruling, Media Matters president Angelo Carusone told The New York Times: “The court’s ruling demonstrates the importance of fighting over folding, which far too many are doing when confronted with intimidation from the Trump administration. We will continue to stand up and fight for the First Amendment rights that protect every American.”
The court’s decision adds to earlier rulings that blocked investigations by state attorneys general in Texas and Missouri, both of whom had also attempted to pursue the group. Despite these victories, Musk’s lawsuits against Media Matters remain active and are expected to continue through the courts.
The dispute underscores ongoing tensions between X and its critics, as well as broader debates about free speech, media accountability and government oversight of digital platforms.
