Skip to Content Facebook Feature Image

A media-rating company says a Trump agency is threatening its livelihood

News

A media-rating company says a Trump agency is threatening its livelihood
News

News

A media-rating company says a Trump agency is threatening its livelihood

2026-03-15 23:09 Last Updated At:03-16 12:43

As media organizations go, NewsGuard cuts a low public profile as it follows its mission of issuing credibility ratings about news outlets. The Trump administration knows about it, though, and the company has joined a lengthening list of journalism organizations to face the White House's wrath.

A dispute between President Donald Trump's regulators and the news monitoring service has spilled into court, with NewsGuard Technologies suing the Federal Trade Commission and its chairman, Andrew Ferguson, to shut down an investigation. The FTC accuses the company of trying to suppress conservative speech. NewsGuard says it is being forced to kneel before vindictive power.

Since Trump returned to office in January 2025, the Republican administration has fought The Associated Press in court over the outlet's claim it is being punished for not adopting his preferred name for the Gulf of Mexico; settled with CBS News' corporate parent in a dispute over “60 Minutes” editing; sued The Wall Street Journal for its reporting on Trump and Jeffrey Epstein; and is in a legal fight with The New York Times over Pentagon reporting restrictions.

NewsGuard’s lawsuit, filed last month in U.S. District Court in the District of Columbia, accuses Trump’s FTC of “brazenly using its power not for any issue concerning trade or commerce but rather to censor speech simply because it disagreed with NewsGuard’s judgments about the reliability of news sources.”

The FTC calls NewsGuard’s accusations “untethered from both law and fact.”

Like the Federal Communications Commission under Brendan Carr, Ferguson’s FTC is a normally sleepy federal agency that has sprung to life to address issues of importance to Trump and his supporters, particularly involving the media. The FCC has launched investigations of media companies and this weekend Carr, responding to a Trump complaint about negative coverage of the Iran war, warned broadcasters “running hoaxes and news distortions” to correct course or see their licenses threatened.

Ferguson has made no secret about where he takes his cues. He said in an interview in July that “I am a law enforcer, and I will follow the law. But the policy priorities are set by the man the people chose to run this government.”

The liberal lobbying group Media Matters for America was one of his targets. A federal judge last summer halted an FTC investigation over efforts to promote advertising boycotts of companies the group opposes, saying the inquiry violated MMA's free speech rights.

While NewsGuard may not be a big name, money is at stake for news outlets friendly to the president. The company began in 2018, started by Court TV founder Steven Brill and Gordon Crovitz, a former Journal publisher. NewsGuard uses journalists to examine thousands of news outlets and websites, giving them ratings based on the credibility and reliability of their journalism.

A monthly subscription costs $4.95. Much of its business comes from companies that advise advertisers where to hawk their products, showing them which news sites may be toxic to their brands, and artificial intelligence companies looking to see where they would be more likely to find information they could trust.

NewsGuard made an enemy of the Trump-friendly television network Newsmax, giving its website a 20 on a scale where 100 is the best score. NewsGuard says “this website is unreliable because it severely violates basic journalism standards.” Newsmax has since repeatedly urged Republican lawmakers or regulators to do what they can to silence NewsGuard, the company said in its lawsuit.

“NewsGuard was started by Steve Brill to target conservative media and get ad agencies to deny them advertising revenue as a means of censorship,” Newsmax spokesman Bill Daddi said. “Brill is a Democratic Party activist and donor over many decades with a long history of advocating for liberal causes. He is not a respected journalist and in no way should be running a ratings service used by major ad agencies.”

Brill said his only political activity was working for Republican John Lindsay, New York City's mayor in the late 1960s and early 1970s, while a college and law school student. “I have been a journalist ever since,” Brill said, adding that he has not donated money to any politicians.

NewsGuard says its ratings are based on clearly defined criteria, such as whether or not an outlet publishes false or misleading material, whether it distorts arguments and uses multiple sources, whether it distinguishes between news and opinion and regularly corrects errors. To counter charges that it unfairly boosted liberals, the company noted times where Fox News scored higher in its ratings than the former MSNBC.

Yet the conservative Media Research Center has published studies contending that NewsGuard is more likely to give higher ratings to outlets with a liberal bent. In court papers, the FTC said it began investigating NewsGuard because congressional investigators connected the company's services to “coordinated actions to demonize disfavored media entities.”

The agency has asked the company to produce reams of internal documents, emails, financial reports and subscriber lists dated to its founding. Not only does NewsGuard consider that task unduly expensive and burdensome, it worries that regulators will use that information to target its subscribers.

The FTC, as a condition to approving a merger of two of the world's biggest media buying firms, Omnicom and IPG, prohibited the new company from using a service that reviews and rates news sites. That is designed to eliminate the company's ability to deny advertising based on politics, the agency said.

It has already cost NewsGuard business, the company asserts.

“The whole idea that any speaker has to justify to the government that it's not biased is a really troubling thought,” Brill said in an interview. “We have a constitutional right to be biased. It just so happens that we started the company on the core principle that we were going to be totally apolitical.”

The FTC's press department did not return a message seeking comment. But in court papers, the agency said it was conducting a broad investigation into whether advertiser boycotts violated antitrust laws and that it has issued more than a dozen orders for information similar to the one given to NewsGuard. The company's charges are “completely meritless,” the agency said.

If its order was so demanding, the FTC wondered why it took NewsGuard eight months after it was issued to sue.

“We tried to cooperate in the belief that the more that we told them what we do, the more likely it would be that they would decide that they didn't have any case,” Brill said. “We soon realized that they weren't worried about the merits.”

The company argues that the FTC actions “will continue until NewsGuard knuckles under.” Asked if he thought the government agency's goal was to put his company out of business, Brill declined to comment.

David Bauder writes about the intersection of media and entertainment for the AP. Follow him at http://x.com/dbauder and https://bsky.app/profile/dbauder.bsky.social.

President Donald Trump speaks at a news conference, Monday, March 9, 2026, at Trump National Doral Miami in Doral, Fla. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks at a news conference, Monday, March 9, 2026, at Trump National Doral Miami in Doral, Fla. (AP Photo/Mark Schiefelbein)

FILE - The Federal Trade Commission building is seen, Jan. 28, 2015, in Washington. (AP Photo/Alex Brandon, File)

FILE - The Federal Trade Commission building is seen, Jan. 28, 2015, in Washington. (AP Photo/Alex Brandon, File)

NEW YORK (AP) — Elon Musk announced plans Wednesday for one of the biggest sales of stock to the public ever for his space company that is currently losing billions of dollars year.

A filing Wednesday shows Musk’s SpaceX lost $2.6 billion from operations last year on $18.7 billion in revenue, and the losses kept piling up at the start of this year, too.

The prospectus did not put a dollar figure on the amount Musk hopes to raise but various reports have put it at $75 billion or so. An offering of that size would easily surpass the current title holder, Saudi Aramco, the oil giant that went public seven years ago and raised $26 billion.

SpaceX, formally known as Space Exploration Technologies Corp., has said the money will help to finance projects to put men on the moon and maybe someday Mars in its quest to make humans an intergalactic species as they face existential threats that could wipe out civilization.

“We do not want humans to have the same fate as dinosaurs,” the filing stated.

The stock sale could also make Musk, a major owner who founded SpaceX in 2002, the world’s first trillionaire. Forbes currently puts Musk's net worth at $839 billion.

In addition to making reusable rockets to hurl astronauts into orbit, SpaceX has other businesses, some successful, some struggling — and with plenty of questions marks.

The document showed Starlink, the world’s largest satellite communications company, is a big cash generator for the company, generating $4.4 billion in operating income last year. The business uses 10,000 satellites in low orbit to provide internet service to 10 million people in 150 countries and territories.

Among the struggling business are two Musk units that were recently acquired by SpaceX — his social media platform X, formerly Twitter, and his artificial intelligence business, xAI. Those purchases were blasted by some SpaceX investors as bailouts because the businesses are big money losers.

The prospectus said its AI business lost $6.4 billion in operations last year.

The original SpaceX business, making rockets and staging launches, has been helped by massive government contracts, which themselves raises questions that could come back to haunt the company. Given Musk’s close relation to the Trump administration, government ethics lawyers and watchdogs have asked if he has gotten special treatment to win taxpayer money and whether that good luck will run out once President Donald Trump is out office.

SpaceX has won contracts worth $6 billion from NASA and the Defense Department and other government agencies in the past five years, according to USAspending.gov. The company notes in its filing that a fifth of its revenue last year was attributable to the federal government.

Musk was the biggest donor to Trump’s presidential campaign and is still a big backer despite their sometimes rocky relationship after his stewardship of the government cost-cutting effort called DOGE early last year.

The document also shows Musk will be able to exert big control over the business.

It says Musk and certain other shareholders will receive shares in a special class of stock that gives them 10 votes for each share they hold. Those shareholders will be able, among other things, to elect a majority of the company’s board of directors.

“This will limit or preclude your ability to influence corporate matters and the election of our directors,” SpaceX said in a warning to prospective investors.

SpaceX will be able to pitch the offering to investors -- in what’s known in Wall Street parlance as a “road show” -- 15 days after making its prospectus public. In this case, that works out to June 4.

FILE - Elon Musk attends the annual meeting of the World Economic Forum in Davos, Switzerland, Jan. 22, 2026. (AP Photo/Markus Schreiber, File)

FILE - Elon Musk attends the annual meeting of the World Economic Forum in Davos, Switzerland, Jan. 22, 2026. (AP Photo/Markus Schreiber, File)

SpaceX's latest version of it's mega rocket Starship is prepared for a test flight from Starbase, Texas, Wednesday, May 20, 2026. (AP Photo/Eric Gay)

SpaceX's latest version of it's mega rocket Starship is prepared for a test flight from Starbase, Texas, Wednesday, May 20, 2026. (AP Photo/Eric Gay)

Recommended Articles