President was sued by two US media groups on Wednesday over Trump Media and Technology Group’s (TMTG) recent announcement that it would charge for early access to his often market-moving Truth Social posts.
The lawsuit, filed in New York by The Intercept and Freedom of the Press Foundation, states that the scheme is “extraordinary, corrupt and unconstitutional.”
As per the plan, subscribers to the paid service are supposed to get near-instant access to Trump’s messages on — crucial seconds ahead of the general public. The service already has over 10 subscribers.
“This scheme is profoundly corrupt. The President stands to gain financially by giving ‘market-moving’ government information to those who are willing and able to pay his personal company,” a court filing says.
Trump often uses the platform to announce huge news, ranging from developments in the Iran war to trade tariffs, all of which can instantly shake the markets. He has often been accused of market manipulation.
10 customers, up to $100,000 subcription fees
Last month, TMTG announced Truth API, a paid service giving customers early access to market-moving posts on the platform.
“Our new Truth API product is already generating revenue, with more than ten customer agreements signed to date,” interim CEO Kevin McGurn said in a press release, without identifying the customers.
Truth API saw “a number of institutional customers” before its August 1 launch and is continuing to gain more despite “factually inaccurate criticism,” the company said.
News outlet Axios has reported that monthly subscription rates for the early access run from $60,000 to $100,000.
‘Would be jail time if this were a public company CEO’
Similar fast-speed feeds are sold by other social media firms and media providers, but many have raised concerns, as Truth Social doesn’t just distribute the news; it makes it, regularly rattling markets as Trump posts policy changes on everything from war to central bank leadership to tariffs.
“If this were the CEO of a public company, this would be jail time,” Irene Aldridge, head of Able Alpha Trading, which doesn’t plan to buy the service, told AP. “We have a President of the United States who has the front seat to all the action, who makes all the decisions, and he’s disclosing this ahead of time to a select group.”
Meanwhile, Trump’s company says critics just aren’t capitalist enough
Asked about the propriety of the new service and whether White House lawyers had vetted it, Trump’s press office declined to comment, referring questions to Truth Social’s publicly traded parent.
That company, however, issued a statement blasting Democratic critics for mischaracterising the service “out of ideological opposition to free markets or a failure to grasp the distinction between public and nonpublic information — or, quite possibly, both.”
