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The prominent liberal bias of the DailyKos site has long infuriated conservatives, but the Federal Election Commission said those opinions don't violate election laws. Both Markos Moulitsas Zuniga and Michael Grace emerged victorious after the FEC ruled in favor of both bloggers. Both individuals were the focus of separate Matter Under Review processes sparked by complaints to the FEC.

In the case of the heavily trafficked Kos, the FEC said, "Activity on the DailyKos website does not constitute a contribution or expenditure that would trigger political committee status."

Exemptions for media have been in existence since 1974. Said the FEC:

In March 2006, the Commission made clear that this exemption extends to online media publications and that "costs incurred in covering or carrying a news story, commentary, or editorial by any broadcasting station. . . , Web site, newspaper, magazine, or other periodical publication, including any Internet or electronic publication," are not a contribution or expenditure unless the facility is owned by a political party, committee, or candidate.

DailyKos had been challenged by Part Time Pundit blogger John C.A. Bambenek, while Grace faced a complaint from House member Mary Bono (R-CA).

Bambenek accused DailyKos of failure to register as a political committee, while Bono's lawyer said Grace's work for her opponent generated unreported expenditures; coordination; and fraudulent misrepresentation of campaign authority.