If someone is sued for defamation, it is the governments court system where that case is settled. That's why it would be considered government action that penalizes speech in this case.
Even if they can prove ill will, unless they published
knowingly false statements or had
reckless disregard for the truth, it doesn't qualify.
They didn't issue a knowingly false statement. If the only editing was to add a dramatic pause, that does not materially change the content of the argument:
"In the leading case governing journalists' use of quotations, Masson v. New Yorker Magazine, Inc., the U.S. Supreme Court addressed the issue under its “substantial truth” doctrine, which allows minor inaccuracies to be ignored so long as the gist of the statement remains true. Accordingly, the deliberate alteration of a quotation does not render the statement false unless the alteration “results in a material change in the statement’s meaning.”"
How important is it to get a quote exactly right? | Reporters Committee for Freedom of the Press