However, on Friday, Judge Sparkle L. Sooknanan sided with Media Matters and blocked the FTC investigation. In her decision, Sooknanan, a district court judge for the District of Columbia named by Joe Biden, wrote that the Media Matters article represented “quintessential First Amendment activity” and the FTC’s growing investigation demands appeared to be a “retaliatory act”.
“It should alarm all Americans when the Government retaliates against individuals or organizations for engaging in constitutionally protected public debate,” she wrote. “And that alarm should ring even louder when the Government retaliates against those engaged in newsgathering and reporting”.
Sooknanan noted that before his appointment as the current FTC chair, Andrew Ferguson had appeared on Steve Bannon’s podcast and called for the FTC to investigate progressive groups criticising online disinformation, also adding that he subsequently “brought on several senior staffers at the FTC who previously made public comments about Media Matters,” reported Reuters.
More so, regardless of the legal outcome, X’s lawsuit has already had a significant effect on the targeted organizations, with Media Matters cutting staff, while the World Federation of Advertisers shut down its brand safety program and reportedly complained of drained finances.
Sooknanan said the FTC investigation has also had its “intended effect,” promoting Media Matters to decide “against pursuing certain stories about the FTC, Chairman Ferguson, and Mr. Musk.”
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