Recently, a California federal court held that Apple, Google, and Facebook (the "Platforms"), operating as application distribution platforms, are not protected by Section 230 against a claim that the Platforms are "processing unlawful transactions for unlawful gambling." In Re: Apple Inc. App Store Simulated Casino-Style Games Litigation, No. 5:21-md-02985-EJD, Dkt. No. 92 at 33 (N.D. Cal. Sept. 6, 2022) (emphasis in original). Essentially, a content distribution platform might not be shielded from liability by Section 230 if it generates or distributes revenue in connection with illegal conduct, or in other words, "[S]ection 230 does not apply to a platform's own bad acts." Id. at 29 (emphasis in original). It's an important decision for interactive entertainment platform companies that rely on Section 230. Here's a summary.
Section 230 in a nutshell. In general, Section 230 provides statutory immunity for service providers against liability arising from information originating with a third-party user of the service. Central to the court's analysis is whether a claim against an interactive service provider "would...
