Eliza Labs, founded by Shaw Walters, filed a federal antitrust lawsuit against social media platform X on August 27, alleging the platform unlawfully extracted technical data about their AI agents before deplatforming them and launching competitor products. The lawsuit seeks over $75,000 in damages and the immediate restoration of Eliza’s account. Walters noted that the lawsuit follows months of unproductive negotiations, highlighting a parallel situation where X has accused Apple and OpenAI of similar anticompetitive behavior. The lawsuit claims X violated Section 2 of the Sherman Act by leveraging monopoly power to suppress AI competition. Eliza’s accounts were suspended in June 2025, and X demanded technical documentation under the guise of reinstatement, utilizing this information to create nearly identical AI features. Remedies sought include a declaratory judgment, injunctions against exclusionary conduct, and monetary damages. This legal battle underscores increasing tensions in the AI market, particularly regarding competitive practices.
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