Trump scores multi-million payout from YouTube in latest major settlement

Oakland, California - YouTube has agreed to pay $22 million to settle a lawsuit filed by President Donald Trump after the platform suspended his account over the January 6, 2021 attack on the Capitol staged by his supporters.

President Donald Trump's lawsuit against YouTube has been settled for $22 million, court filings showed Monday.  © Collage: REUTERS & Photo by Carl de Souza / AFP

YouTube, a subsidiary of Google parent Alphabet, is the latest Big Tech firm to settle with Trump after he lodged legal cases challenging his broad deplatforming after January 6.

The $22 million will go toward Trump's latest construction project at the White House, through a nonprofit called Trust for the National Mall, which is "dedicated to restoring, preserving, and elevating the National Mall, to support the construction of the White House State Ballroom," per a notice of settlement filing in a California federal court.

Besides the $22 million to Trump's ballroom venture, YouTube agreed to payments of $2.5 million to a host of other Trump allies, including the American Conservative Union.

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Trump reposted a message on his Truth Social platform late Monday saying "this MASSIVE victory proves Big Tech censorship has consequences," adding that the Republican "fought for free speech and WON!"

Major platforms removed Trump after January 6 as he continued to promote violence with bogus claims that voter fraud caused his loss to Joe Biden in 2020.

YouTube blocked Trump from uploading new content on January 12, 2021, pointing to "concerns about the ongoing potential for violence." The move came in parallel to actions by Facebook and Twitter that also suspended Trump's ability to post after the January 6 upheaval.

The Republican took social media companies and YouTube to court, claiming he was wrongfully censored.

Trump's lawyers maintained he was kicked off under "non-existent or broad, vague and ever-shifting standards," according to the original July 2021 complaint against YouTube and Alphabet CEO Sundar Pichai.

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Tech and media world bow to Trump

Trump was banned or suspended from most major social media platforms after his supporters stormed the Capitol on January 6, 2021.  © REUTERS

Legal experts have seen Trump's claims against the tech giants as shaky at best, noting that the First Amendment of the US Constitution bars the government, but not a private actor, from restricting speech.

YouTube "is not a state actor and its exercise of editorial discretion over its private service does not implicate Plaintiffs' First Amendment rights," the company said in a December 2021 rebuttal to Trump's brief.

Journalism watchdog group Media Matters decried the settlement, saying it portends continued First Amendment problems under Trump.

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"YouTube's capitulation is shameful and shortsighted. Needlessly folding now will only help encourage Trump's efforts to stifle dissent by bringing media and online platforms to heel," the group's president Angelo Carusone told AFP in a statement.

Tech and media companies have been eager to settle with Trump since his he took office for a second time, in return for his administration's backing in various legal and regulatory matters.

Big questions facing YouTube and Google/Alphabet include a trial in Virginia in which a federal court is weighing a request from government lawyers to order the breakup of the search engine giant's ad technology business.

In February, Elon Musk's X settled for about $10 million in a Trump lawsuit against the company and its former chief executive Jack Dorsey.

In January, days after Trump's inauguration, Meta agreed to pay $25 million to settle his complaint, with $22 million of the payment going toward funding his future presidential library.

Media companies have also agreed to settlements with Trump in cases brought by the president that experts see as legally suspect, such as Paramount Global's $16-million settlement ahead of an $8-billion takeover approved by the FCC.

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