YouTube Shells Out $24.5M to Settle High-Profile Trump Lawsuit
YouTube, the popular video-sharing platform owned by Google's parent company Alphabet, has reportedly agreed to a $22 million settlement in a lawsuit filed by former US President Donald Trump. This significant development, revealed in a Monday court filing, follows the suspension of Trump's account in the aftermath of the January 6, 2021, Capitol attack. This settlement positions YouTube as the latest major technology firm to reach an agreement with Trump, who initiated legal challenges against various companies for his widespread deplatforming after the events of January 6.
The financial details of the settlement outline that the $22 million will be directed towards one of Trump's latest construction endeavors at the White House. Specifically, the funds will be channeled through a nonprofit organization named Trust for the National Mall, which is dedicated to the restoration, preservation, and elevation of the National Mall. The primary purpose of this allocation is to support the construction of the White House State Ballroom, as detailed in a notice of settlement filed in a California federal court. Furthermore, YouTube committed to additional payments totaling $2.5 million to various allies of Trump, including the American Conservative Union.
The lawsuit stemmed from YouTube's decision to block Trump from uploading new content to his channel on January 12, 2021. This action was taken amidst "concerns about the ongoing potential for violence," following claims by Trump that voter fraud had caused his loss to Joe Biden in the 2020 presidential election. The move by YouTube mirrored similar actions taken by other major platforms such as Facebook and Twitter, which also suspended Trump's posting privileges after the January 6 upheaval. The then 79-year-old Republican subsequently took these social media companies, including YouTube, to court, alleging he had been wrongfully censored and that his free speech rights were violated.
Trump's legal team asserted that he was removed from the platforms under "non-existent or broad, vague and ever-shifting standards," according to the original complaint filed in July 2021 against YouTube and Alphabet CEO Sundar Pichai. The restrictions on his posting capabilities were implemented after more than 140 police officers sustained injuries during hours of clashes with pro-Trump rioters. These rioters, wielding an array of makeshift weapons including flagpoles, baseball bats, hockey sticks, Tasers, and canisters of bear spray, sought to obstruct Congress from certifying Biden's electoral victory.
Despite Trump's claims of free speech violations, legal experts have largely viewed his lawsuits against the tech giants as legally precarious. This assessment is based on the understanding that the First Amendment of the US Constitution primarily restricts the government from curtailing speech, not private entities. YouTube itself echoed this sentiment in a December 2021 rebuttal to Trump's brief, stating that it "is not a state actor and its exercise of editorial discretion over its private service does not implicate Plaintiffs' First Amendment rights."
The willingness of tech and media companies to greenlight settlements with Trump, particularly since his return to the political sphere, is seen by some as a strategic move. These companies are currently awaiting crucial decisions from Washington on significant matters affecting their businesses. For instance, Google and Alphabet face a trial in Virginia where a federal court is considering a government request to order the breakup of the search engine giant's ad technology business.
YouTube's settlement is not an isolated incident. In February, Elon Musk's X (formerly Twitter) reached a settlement of approximately $10 million in a lawsuit initiated by Trump against the company and its former chief executive, Jack Dorsey. Similarly, in January, shortly after President Trump’s inauguration, Meta (Facebook's parent company) agreed to pay $25 million to settle a complaint from Trump, with $22 million earmarked for funding his future presidential library. Media companies have also entered into settlements in cases considered legally questionable. Paramount Global, for example, agreed to pay $16 million to resolve a lawsuit filed by Trump over an interview with former Vice President Kamala Harris, which Trump alleged was unfairly edited. This particular settlement occurred as Paramount was seeking regulatory approval for its acquisition by Skydance, with the Federal Communications Commission approving the $8 billion takeover in July.
While Google declined to comment on the specific reasons behind the YouTube settlement, it is notable that Trump’s YouTube account has since been restored in 2023. The $22 million payment represents a minor financial impact for Alphabet, a company boasting a market value nearing $3 trillion, which has seen an increase of approximately $600 billion (25%) since Trump's return to the White House. The disclosure of this settlement occurred just a week prior to a scheduled court hearing on October 6 with U.S. District Judge Yvonne Gonzalez-Rogers in Oakland, California.
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