Eliza Labs Files Antitrust Lawsuit Against X Over AI Agent Monopolization Claims

Eliza Labs and founder Shaw Walters have initiated a federal antitrust lawsuit against social media platform X, alleging fraudulent extraction of technical information about their AI agents before being deplatformed. The lawsuit, filed on Aug. 27, seeks damages exceeding $75,000 and immediate account restoration.

Walters described the legal action as a last resort after failed negotiations, citing X's demand for a $600,000 annual enterprise license despite existing fee payments. The complaint accuses X of violating Section 2 of the Sherman Act by leveraging its monopoly power in short-form social media to suppress AI competition.

The case highlights growing tensions between AI developers and tech platforms over competitive practices. X suspended Eliza's accounts in June 2025 following earlier collaboration talks, raising questions about fair competition in the AI sector.