A Fine Gael TD is demanding to know why RTE did not push the option of a "right of reply" in light of legal complaints over the Panti Bliss episode of the Saturday Night Show.
The broadcaster paid out €85,000 and issued an apology after an appearance by drag artist Rory O'Neill last month.
The decision has sparked hundreds of complaints. Minister for Communications Pat Rabbitte has since announced that he is considering watering down the rules so that broadcasters are only legally barred from causing "undue" offence to viewers or listeners.
Deputy Jerry Buttimer told the Dáil last night that he had been targeted for abuse because of his sexuality.
This morning he said he wanted RTE to release more details on their reasoning for making the settlement.
"I genuinely believe that in this case, RTE should have pursued…the right of reply instead of capitulating because of money," he said.
He conceded he was not in possession of the full facts from RTE's point of view.
"I appreciate they had to make a commercial decision - it could have cost multiples of what they paid (if it had progressed to court) but they did offer the right of reply. Why wasn't that followed up?"