Google's YouTube has reached a settlement of $24.5 million in a lawsuit filed by former President Donald Trump. This lawsuit was initiated after the video platform suspended Trump's account following the events of January 6, 2021, when the Capitol was attacked. The suspension occurred in the aftermath of the election that led to Trump leaving the White House for four years.
The settlement allocates $22 million to Trump, which he intends to contribute to the Trust for the National Mall and help finance the construction of a new White House ballroom, as detailed in court documents filed on Monday. The remaining $2.5 million will be distributed among other parties involved in the case, including writer Naomi Wolf and the American Conservative Union.
Alphabet Inc., the parent company of Google, is now the third major technology firm to settle a series of lawsuits brought by Trump, who claimed that these platforms unfairly suppressed him after his presidency ended in January 2021. Trump has filed similar cases against Meta Platforms, the parent company of Facebook, and Twitter, which has since been rebranded as X following its acquisition by billionaire Elon Musk in 2022.
In previous settlements, Meta agreed to pay $25 million to resolve Trump's lawsuit related to his 2021 suspension from Facebook, while Twitter settled with Trump for $10 million. Legal experts had initially expressed skepticism regarding Trump's chances of success in these lawsuits against the social media giants.
Following his acquisition of Twitter for $44.5 billion, Musk emerged as a significant supporter of Trump’s 2024 campaign, which successfully led to his re-election. However, the two later experienced a public falling out after several months during which Musk implemented cost-cutting measures that resulted in significant layoffs from the federal payroll. Both Sundar Pichai, CEO of Alphabet, and Mark Zuckerberg, CEO of Meta, were noted for showing support for Trump during his second inauguration in January, signaling the technology industry's intention to engage more closely with his administration compared to his first term.
In related legal matters, ABC News agreed to pay $15 million in December to support Trump's presidential library as part of a settlement over a defamation lawsuit concerning an inaccurate statement made by anchor George Stephanopoulos. Additionally, in July, Paramount made a settlement payment of $16 million to Trump over issues related to the editing of a segment on CBS's "60 Minutes."
The recent settlement does not imply an admission of liability, according to the court filing. While Google has acknowledged the settlement, the company has chosen not to provide further comments regarding its reasons or implications. Notably, Trump's YouTube account was reinstated in 2023 following the platform's policy updates.
This settlement figure represents a minor financial impact on Alphabet, which boasts a market valuation of nearly $3 trillion—an increase of approximately $600 billion, or 25%, since Trump’s return to the political spotlight during his re-election campaign.
The announcement of this settlement was made shortly before a scheduled court hearing set for October 6 to further discuss the case with U.S. District Judge Yvonne Gonzalez-Rogers in Oakland, California.
Overall, the landscape of tech companies navigating legal challenges related to content moderation and free speech continues to evolve, particularly in the context of political figures like Trump.
