Musk's X Company Faces Antitrust Lawsuit from Eliza Labs

BlockBeats News, August 29th, according to Reuters, software development company Eliza Labs has sued Elon Musk's X Corp, alleging that it obtained key technical information from the company before suspending Eliza's account and launching a mimic AI product.

Eliza and its founder and plaintiff Shaw Walters stated that X induced them to share technical details about the AI agent running on the social platform and forced developers to pay a high enterprise license fee to continue operating.

The lawsuit alleges that X abused its dominance in social media to suppress competitors, violating antitrust laws. Eliza emphasized that its expulsion from the platform was not an editorial decision but a "carefully orchestrated and deceitful" act that damaged the company's customer relationships and restricted its growth. The case is currently pending in a San Francisco federal court, and representatives of X and Eliza have not yet responded to requests for comment.