Apple, Google and Meta have been unsuccessful in their efforts to throw out a series of lawsuits alleging they profited from casino-style mobile games, after a federal judge in California refused to dismiss the majority of claims against them.
US District Judge Edward Davila denied the trio’s attempts to claim protection under Section 230 of the Communications Decency Act – which generally shields online platforms from liability linked to third-party content – due to their involvement in handling in-app purchases.
In a 37-page ruling, Davila stated that the companies’ activity meant they were not acting as “publishers” and therefore could not rely on Section 230 as a legitimate defence.
“The crux of the plaintiffs’ theory is that the defendants improperly processed payments for social casino apps,” Davila wrote. “It is beside the point whether that activity turns defendants into bookies or brokers.”
Originally filed in 2021, the litigation against the three tech giants alleges Apple’s App Store, Google’s Play Store and Meta’s Facebook all actively promoted games that were designed to replicate “an authentic Vegas-style experience of slot machine gambling”, and that they were responsible for acting as financial intermediaries while selling virtual chips for commissions as high as 30%.
The plaintiffs argued these fees generated over $2bn for the defendants, in what they termed an “illegal racketeering conspiracy”, and contended that beyond financial damages, the casino-style games also caused severe social and psychological harm including addiction, depression and suicidal ideation.
Though Judge Davila threw out certain claims related to individual state statutes, the majority of consumer protection allegations were allowed to proceed.
The three companies will now have to continue defending themselves against the charges.
Additionally, the fact the ruling deemed payment processing activities to fall outside the protection of Section 230 may yet set a precedent for how courts look at tech companies’ financial involvement in third-party applications – that’s if Davila’s interpretation is upheld.
At the time of writing, neither plaintiffs nor defendants have issued any comments on the ruling.
The post Federal judge refuses to dismiss Apple, Google and Meta casino app lawsuits first appeared on EGR Intel.
Tech giants set to remain in the legal spotlight after US District Judge Edward Davila rules they must answer lawsuits accusing them of profiting from casino-style mobile games
The post Federal judge refuses to dismiss Apple, Google and Meta casino app lawsuits first appeared on EGR Intel.