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media matters
Lina Khan Calls Republican FTC's Decision to Drop PepsiCo Suit 'Disturbing Behavior'
"This meritless dismissal is a win for monopolists and billionaires," said the senior legal counsel for the American Economic Liberties Project.
May 23, 2025
The U.S. Federal Trade Commission on Thursday dismissed a price discrimination lawsuit against the drink and food giant PepsiCo, a move that former FTC Chair Lina Khan, who served under former President Joe Biden, called "disturbing behavior."
The lawsuit, filed only a few days before U.S. President Donald Trump returned to the White House, accused PepsiCo of providing a big box retailer customer, Walmart, with pricing advantages, while increasing prices for competing customers and retailers.
"This lawsuit would've protected families from paying higher prices at the grocery store and stopped conduct that squeezes small businesses and communities across America," Khan wrote on X on Thursday. "Dismissing it is a gift to giant retailers as they gear up to hike prices."
The three members of the FTC, all Republicans, voted 3-0 to drop the suit. Current FTC Chair Andrew Ferguson, who was named chairman by Trump, cast the lawsuit as a "nakedly political effort to commit this administration to pursuing little more than a hunch that Pepsi had violated the law." He also said that the FTC under Biden "rushed to authorize the case." Ferguson also opposed the lawsuit when the FTC first voted to pursue it.
Antimonopoly groups were quick to criticize Thursday's move.
"This meritless dismissal is a win for monopolists and billionaires," said Lee Hepner, senior legal counsel at the American Economic Liberties Project, in a statement on Thursday. "Adding insult to injury, the agency dropped the case just one day before the parties were due to justify extensive redactions in the complaint, denying the public the ability to review the facts and judge the merits for themselves. This is a corporate pardon for Walmart and PepsiCo."
Open Markets legal director Sandeep Vaheesan said the move illustrates that despite their rhetoric, the current FTC commissioners are "not willing to faithfully apply the law enacted by Congress."
Stacy Mitchell, co-director at the Institute for Local Self-Reliance, which is an advocate for independent businesses, called it "effectively an endorsement of the predatory tactics Walmart uses to crush local grocery sores, create food deserts, and drive up prices."
The agency had sued PepsiCo under the Robinson-Patman Act, a 1936 law intended to prevent price discrimination but has been little used in recent decades.
The announcement of the dropped lawsuit came the same day it was reported that the FTC is investigating the progressive watchdog group Media Matters for America over potential coordination with other groups, including the Global Alliance for Responsible Media, which was a World Federation of Advertiser initiative. Media Matters president Angelo Carusone confirmed in a statement to Axios that the investigation is over claims Media Matters and other groups coordinated advertising boycotts of the social media site X.
X's owner, billionaire Elon Musk, who has played a core role in the Trump administration, has ongoing lawsuits against both the World Federation of Advertisers and Media Matters.
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Gen Z Progressive With Massive TikTok Following Launches Congressional Bid in Illinois
Kat Abughazaleh said that her campaign had raised $200,000 in its first 24 hours because "people believe in our 'far-left' ideas like Existence Shouldn't Be So Difficult."
Mar 25, 2025
Progressive influencer Kat Abughazaleh on Monday launched a bid to run for Illinois' safely blue 9th Congressional District, a seat that is currently held by Democratic Rep. Jan Schakowsky.
U.S. President Donald Trump and his billionaire adviser Elon Musk "are dismantling our country piece by piece, and so many Democrats seem content to just sit back and let them, so I say it's time to drop the excuses and grow a fucking spine," Abughazaleh said in her campaign launch video.
Schakowsky, who is 80 and has held the seat since 1998, "has had a pretty great track record on her voting," Abughazaleh told Rolling Stone. "She's been a good congresswoman, but I want to be better."
A reporter with the local paper Evanston Now posted a statement from Schakowsky responding to Abughazaleh's campaign. "I have always encouraged more participation in the democratic process, and I'm glad to see new faces getting involved as we stand up against the Trump administration," Schakowsky wrote. Schakowsky has not said officially whether she plans on running for reelection, according to the reporter.
On Tuesday, Abughazaleh announced that her campaign had raised $200,000 in its first 24 hours because "people believe in our 'far-left' ideas like Existence Shouldn't Be So Difficult."
In her campaign launch video, Abughazaleh also foregrounded economic concerns, saying there's "no reason" Americans shouldn't be able to afford housing, groceries, and healthcare.
Abughazaleh, a 26-year-old, who was raised a Republican, previously worked for the left-leaning media monitoring organization Media Matters for America. In 2024, she and 11 other employees were laid off after Musk sued the organization.
Abughazaleh has risen to prominence on TikTok, amassing over 220,000 followers, by posting videos about the right-wing—for example, a multipart series on the white Christian nationalism and commentary on Fox News' coverage. She also covered the 2024 Democratic National Convention as a social media influencer.
Rolling Stone also noted that Abughazaleh is "a wildly successful, incisive communicator who is stepping up at a time when it is clear that the party is in desperate need of new messengers."
Her announcement comes as Democrats in Congress have gotten an earful at town halls, with many constituents showing up to demand Democrats do more to counter U.S. President Donald Trump and Elon Musk.
Illinois' 9th Congressional District includes parts of Chicago, Evanston, and Glenview. Abughazaleh moved to the Chicago area in July, according to Politico.
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'Sad Day for Free Speech': Media Matters Layoffs Follow 'Thermonuclear' Attack by Elon Musk
"This is how free speech is actually chilled—vengeful dipshit billionaires," said one media executive, after more than a dozen staffers let go from nonprofit watchdog whose mission is to combat right-wing disinformation and propaganda.
May 24, 2024
Just months after mega-billionaire Elon Musk launched what he termed a "thermonuclear lawsuit" against Media Matters for America, the nonprofit media watchdog outfit announced a round of punishing layoffs Thursday which it in part attributed to the financial strain imposed by the legal battle it now faces.
What triggered Musk's initial outrage in November was MMFA reporting about "pro-Nazi content" on the social media platform X, owned by Musk, appearing alongside ads by prominent corporations in the content stream shown to users.
In his post threatening the lawsuit, which was later filed in Texas, Musk vowed to target "Media Matters and ALL those who colluded in this fraudulent attack on our company." Noting the scope of his retribution, Musk then added: "Their board, their donors, their network of dark money, all of them…" would be included in the suit's scope.
"However you feel about our work, it should worry you that any billionaire could do this to any outlet at any time for any reason. It's a sad day for free speech."
In the organization's Thursday announcement of layoffs, Media Matters' president Angelo Carusone said: "We're confronting a legal assault on multiple fronts and given how rapidly the media landscape is shifting, we need to be extremely intentional about how we allocate resources in order to stay effective. Nobody does what Media Matters does."
Due to the pressures, Carusone explained, the group was "taking this action now to ensure that we are sustainable, sturdy and successful for whatever lies ahead." More than a dozen staffers, including researchers and digital producers, were among those terminated.
"Many of my best colleagues at Media Matters lost their jobs today," Ari Drennen, the LGBTQ program director for Media Matters, said Thursday on X alongside individual posts from many of those laid off. "However you feel about our work, it should worry you that any billionaire could do this to any outlet at any time for any reason. It's a sad day for free speech."
Media Matters for America (MMFA) is a 501(c)3 registered nonprofit—which describes itself as a "progressive research and information center dedicated to comprehensively monitoring, analyzing, and correcting conservative misinformation in the U.S. media"—founded in 2004 at the height of the George W. Bush administration.
Ever since it has targeted the right-wing media echo chamber, including Fox News and other prominent cable, newspaper, and radio broadcasters who coordinate the messaging of pro-corporate and reactionary forces within the Republican Party and beyond.
In a post on X shared Thursday afternoon, laid-off Media Matters journalist Kat Abughazaleh lamented the firing of her talented colleagues (and encouraged outlets that are hiring to consider them) as she also directed her ire at Musk for his possible role in the downsizing decision.
"There's a reason far-right billionaires attack Media Matters with armies of lawyers," said Abughazaleh. "They know how effective our work is, and it terrifies them (him)," with the parenthetical a seeming reference to Musk.
Responding to her message on the social media platform now owned by Musk, media executive Ben Collins, current CEO of the satirical website The Onion, doubled-down on the charge against the Tesla founder and on-again-off-again world's richest man.
"Fuck Elon Musk," Collins said.
"This is why right-wing billionaires sue people reporting on them," continued Collins, who previously worked as a reporter for NBC News covering, among other thing, right-wing disinformation. "They know they can't win these lawsuits. But they also know legal fees will cripple the little guy reporting on their lies and crimes. This is how free speech is actually chilled—vengeful dipshit billionaires."
Musk has championed himself as a devote "free speech absolutist," but his time at the helm of X, which was Twitter when he purchased it, has repeatedly exposed the limits of his commitment.
"This is the latest example of billionaires and pandering politicians abusing the legal system to retaliate against their critics and harm the public's right to know," said Seth Stern, director of advocacy for the Freedom of the Press Foundation, in result to the layoffs at MMFA. "The result is that the American public loses access to information in a critical election year."
Stern identified Musk's use of a what's called a SLAPP lawsuit, which stands for strategic lawsuits against public participation, as increasingly commonplace by powerful figures and corporations who go after groups they don't like in court knowing full well that the financial resources required to fight the lawsuits can force their opponent into submission, regardless of the veracity of the allegations, or even force it into bankruptcy.
"States that don't have laws in place to combat SLAPPs should pass them," argued Stern. "Those that do should strengthen them. And Congress needs to pass a strong anti-SLAPP bill at the federal level right away. This isn't a partisan issue. While this time it's a right-leaning billionaire going after a left-leaning organization, the shoe could easily be on the other foot next time."
In 2007, in one of the most famous cases of its kind, the Gawker media group—which controlled a number of online outlets—was sued by professional wrestler Hulk Hogan, a lawsuit later discovered to be bankrolled by right-wing billionaire Peter Thiel due to a preexisting grudge he had against the site's reporting, which ultimately led to its bankruptcy.
In March of this year, a federal judge in California threw out a similar lawsuit brought by X under Elon Musk against the Center for Countering Digital Hate, a nonprofit group that had publicly accused the platform of profiting off hateful content published on the platform.
In tossing the case, U.S. District Court Judge Charles R. Breyer cited the transparent motivation behind the suit as part of the reason it lacked legitimacy.
It was "evident," said Breyer in his ruling that "X Corp. has brought this case in order to punish CCDH for CCDH publications that criticized X Corp.—and perhaps in order to dissuade others who might wish to engage in such criticism."
As Tim Karr, senior director at the media advocacy group Free Press, wrote in an op-ed for Common Dreams last year, Musk's "attempts to silence his critics are not surprising to anyone who has followed Musk's erratic behavior" over recent years.
"The magnate positions himself as a champion of free and open debate," wrote Karr, "while taking extraordinary efforts to silence any honest criticism and independent research that might negatively impact Musk and his many businesses."
Citing the specific attack on CCDH at the time, Karr concluded that the "only thing absolute about Elon is his refusal to give a fair hearing to any of his critics. And that's absolutely not free-speech absolutism."
Update: This piece has been updated to include comment from Seth Stern at Freedom of the Press Foundation.
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