FTC Settlement with Media Matters Highlights Growing Use of Regulatory Power to Influence Media

In May 2026 the FTC settled its case with Media Matters for America, ending an investigation that had sought communications records after Media Matters reported pro-Nazi content appearing alongside ads on X. Earlier that year X filed antitrust lawsuits against Media Matters and advertisers that had left the platform, naming Global Alliance for Responsible Media (Garm) as a target. A Texas judge dismissed the suit, finding advertisers acted independently. Garm dissolved in August 2024 under legal pressure. FTC also tied approval of Omnicom-IPG advertising merger to the abandonment of NewsGuard, a news-credibility service.

The Guardian

FTC chair Andrew Ferguson, who took office in January 2026 after pledging to confront “the radical left”, warned in April 2025 that the agency’s tools are “expensive when applied to you even if we don’t win at the end of the day, so knuckle under”. Texas AG Ken Paxton and Missouri AG Andrew Bailey opened fraud investigations into Media Matters after pressure from Stephen Miller, now deputy White House chief of staff; courts later forced the FTC and the AGs to retreat. Newsmax urged the FTC to condition the Omnicom-IPG merger on abandoning NewsGuard. Media Matters reported donor losses and staff cuts; NewsGuard said legal costs consumed a large share of revenue.

The Guardian

FTC Chair Andrew Ferguson emphasized that the agency’s investigative tools are costly and can be used to pressure targets. FCC Democratic Commissioner Anna Gomez said the Paramount-Skydance deal involved unprecedented government control over newsroom decisions, violating the First Amendment. Former senior DOJ antitrust official Roger Alford described the FTC’s conduct as a pay-to-play regulatory scheme.

The Guardian

Critics argue the FTC lacks a statutory mandate to probe First Amendment disputes and that its actions constitute lawfare designed to chill speech, drain resources and make opposition untenable. The Media Matters settlement, pressure on NewsGuard and Garm’s dissolution illustrate a pattern in which state officials and oligarchs use regulatory levers to shape the media environment. Media watchdogs report donor attrition, staff cuts and reduced capacity, while advertisers cite legal uncertainty as a factor in avoiding platforms hosting extremist content.

The Guardian

“radically left” — Judge (questioning FTC lawyer)

The Guardian

“expensive when applied to you even if we don’t win at the end of the day, so knuckle under” — Andrew Ferguson, FTC Chair

The Guardian

“never-before-seen forms of government control over newsroom decisions and editorial judgment – actions that violate both the First Amendment and the law” — Anna Gomez, FCC Democratic Commissioner

The Guardian