A federal judge has rejected attempts by Apple, Google, and Meta Platforms to dismiss lawsuits that claim the companies promoted illegal gambling through casino-style apps. The lawsuits accuse the companies of hosting these apps and profiting from them, leading to user addiction.
US Judge Edward Davila Rejects Apple, Google, and Meta’s Defence
U.S. District Judge Edward Davila, based in San Jose, California, ruled against the tech giants’ primary defence. The companies argued they were protected by Section 230 of the federal Communications Decency Act, a law that generally shields online platforms from responsibility for content posted by others. The judge decided that this protection did not apply to their actions in this case.
Apple, Google, and Meta Lawsuit- What are the Claims?
While Judge Davila did dismiss some claims related to certain state laws, he permitted most of the lawsuits, which are brought under consumer protection laws, to move forward (except for claims based on California’s consumer protection laws).
The plaintiffs—dozens of users—claim that the companies’ platforms (Apple’s App Store, Google’s Play Store, and Meta’s Facebook) promoted a “Vegas-style” gambling experience through what they allege is an illegal conspiracy.
The lawsuits accuse Apple, Google, and Meta of exploiting users, which allegedly resulted in serious harm, including depression and suicidal thoughts. Most importantly, the plaintiffs claim that the companies were acting as brokers by carrying out payments for these apps and charging a 30% commission that is estimated to be over $2 billion. The individuals who brought the lawsuits are seeking substantial monetary compensation.
Judge’s Reasoning For Rejecting Apple, Google, and Meta’s Defence
In his 37-page decision, Judge Davila concluded that Apple, Google, and Meta were not acting as “publishers” when they processed these payments, which is why he determined they cannot claim Section 230 immunity.
He stated that the core issue is that the companies “improperly processed payments” for the social casino apps. The judge found it irrelevant that the companies merely provided “neutral tools” or that the lawsuits didn’t label them “bookies” or “brokers.”
What’s Next for Apple, Google, and Meta?
Due to the significance of the issues surrounding Section 230, Judge Davila said that Apple, Google, and Meta can immediately appeal his decision to the 9th U.S. Circuit Court of Appeals. The lawsuit accusing the companies of promoting illegal gambling began back in 2021.
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