A federal judge has refused to dismiss the lawsuit filed against tech giants Apple, Google, and Meta for profiting from illegal gambling apps. The original lawsuit alleges that these companies make profits from the addictive casino-style games by collecting fees from user transactions.
Apple, Google, and Meta seek immunity from Section 230
The tech companies argue that they are protected under Section 230 of the Communications Decency Act. It is a law that shields platforms, or companies, from liability for third-party content. U.S. District Judge Edward Davila has, however, disagreed. In his 37-page ruling, the judge adds that the lawsuit does not focus on the content moderation. Instead, it focuses on how both firms processed payments for casino-style apps. And, therefore, the Section 230 immunity doesn’t apply.
The court also adds that once the companies processed payments, they were no longer neutral platforms. However, some state claims, which were part of the lawsuit, were dismissed. But what matters is that most consumer protection allegations will proceed and will therefore keep the lawsuit alive.
The gambling trial against Apple, Google, and Meta may begin soon
The lawsuit claims that Apple, Google, and Meta collected up to 30% commissions on gambling and casino-style app purchases. Plaintiffs also argue that this move created a strong incentive for the companies to keep these “illegal” apps available although they harm the user.
The judge allowed the companies to make an immediate appeal to the Ninth Circuit Court of Appeals, given the importance of Section 230. Moreover, previous appeals made in May 2024 were dismissed, as the court added that it had no jurisdiction at that time. The case has been ongoing since 2021 in the Northern District of California. Apple and Meta have not yet commented on the latest ruling, while Google has declined to share its words.
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