Home Latest Insights | News X to Pay Trump $10m to Settle Censorship Lawsuit Amid Strengthening Ties Between Musk and Trump

X to Pay Trump $10m to Settle Censorship Lawsuit Amid Strengthening Ties Between Musk and Trump

X to Pay Trump $10m to Settle Censorship Lawsuit Amid Strengthening Ties Between Musk and Trump

Elon Musk’s X, formerly known as Twitter, has agreed to pay $10 million to settle a lawsuit brought by U.S. President Donald Trump, which accused the platform of unlawfully censoring him following the January 6, 2021 Capitol attack.

The settlement, first reported by The Wall Street Journal, marks a significant moment in Trump’s long-running legal battle against major technology companies, including Facebook (now Meta) and Google (now Alphabet), over what he has repeatedly described as politically motivated suppression of conservative voices.

The case originated in 2021 when Twitter, under then-CEO Jack Dorsey, permanently banned Trump’s account following the Capitol riot. The company cited its “glorification of violence” policy, arguing that Trump’s tweets could incite further unrest. Two specific tweets were referenced as the basis for the ban.

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In one, Trump referred to his supporters as “American Patriots” and stated they “will not be disrespected or treated unfairly in any way, shape, or form!!!” In another, he announced that he would not attend Joe Biden’s inauguration. Twitter determined that these statements could be interpreted as supporting those who stormed the Capitol or as encouragement for individuals considering violence at the inauguration.

Trump subsequently sued Twitter, Facebook, and Google, arguing that their actions violated his right to free speech and amounted to politically motivated censorship. Although the lawsuit initially sought to challenge the power of social media companies over political discourse, recent developments surrounding Musk’s takeover of Twitter altered the course of the legal battle. According to The Wall Street Journal, Trump’s legal team considered dropping the case altogether, given Musk’s outspoken support for free speech and his decision to reinstate Trump’s Twitter account after acquiring the platform in 2022. However, negotiations ultimately led to a $10 million settlement.

The lawsuit settlement follows a similar case involving Meta, the parent company of Facebook and Instagram, which also suspended Trump’s accounts following the Capitol attack. Last month, Meta agreed to pay $25 million to settle a lawsuit regarding Trump’s censorship claims. The terms of that settlement reportedly included using a significant portion of the funds for Trump’s presidential library, but it remains unclear where the $10 million from X’s settlement will go.

Musk’s decision to settle Trump’s lawsuit underscores the growing alliance between the billionaire and the president. In recent years, Musk has aligned himself politically and financially with Trump, reportedly contributing more than $200 million to Trump’s re-election campaign last year.

This political alignment became even more apparent after Musk accepted a prominent role in Trump’s administration as the head of the newly created Department of Government Efficiency (DOGE). As part of his role, Musk has spearheaded efforts to reduce federal bureaucracy, cut government spending, and restructure several agencies, moves that have already sparked significant legal challenges and political opposition.

Trump’s growing influence over major tech companies has not been limited to his relationship with Musk. While Meta CEO Mark Zuckerberg previously clashed with Trump and supported the restrictions placed on his accounts in 2021, his stance has shifted in recent months.

Following the attempted assassination of Trump last summer, Zuckerberg reportedly referred to Trump as a “badass” and later authorized Meta to donate $1 million to Trump’s inauguration fund. The warming relationship between the two men became even more evident during Trump’s second inauguration last month, where both Musk and Zuckerberg were given prominent seating among other tech executives and political allies.

The settlement between X and Trump represents more than just a financial agreement; it signals a broader shift in the relationship between Silicon Valley and the political landscape. For years, major tech companies were perceived as adversaries to Trump and his movement, frequently accused of suppressing conservative voices. However, with Musk at the helm of X and Zuckerberg gradually moving closer to Trump’s orbit, the dynamics appear to be changing.

Tech billionaires who once distanced themselves from Trump’s rhetoric are now becoming some of his most influential allies.

With Trump now firmly backed by figures like Musk and, to a lesser extent, Zuckerberg, the once-hostile environment between Big Tech and Trump’s political movement is undergoing a dramatic transformation—one that could reshape the internet’s role in politics for years to come.

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