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U.S. Appeals Court Upholds Most of California’s Child Social Media Law

/in /tarafından

A U.S. federal appeals court has largely upheld California’s law restricting social media platforms from offering “addictive feeds” to children without parental consent, in a ruling that could reshape how tech giants design online experiences for minors.

What the Law Does

  • Applies to: Social media companies like Google, Meta (Facebook, Instagram), Netflix, and X (formerly Twitter).

  • Core restriction: Makes it illegal for platforms to serve algorithmically personalized feeds to children unless parents explicitly approve.

  • Rationale: California lawmakers argue such feeds can harm children’s mental health by encouraging compulsive scrolling and social comparison.

Court’s Ruling

  • The 9th U.S. Circuit Court of Appeals rejected most of NetChoice’s claims that the law violates the First Amendment by limiting how companies “speak” to children.

  • Judge Ryan Nelson, writing for the panel, said NetChoice failed to show that unconstitutional applications of the law outweighed constitutional ones.

  • Age verification rules (taking effect in 2027) were deemed too early to challenge.

  • However, the court did block a requirement that default settings hide likes and comments from children, saying it was not the least restrictive way to protect mental health.

Industry Pushback

  • NetChoice, a trade group representing 41 major tech companies, said it was “largely disappointed” by the decision.

    • Paul Taske, its litigation co-director, argued the law “usurps the role of parents” and expands government control over lawful online speech.

  • NetChoice has also filed lawsuits against similar state-level internet restrictions across the U.S.

What’s Next

  • The case now returns to U.S. District Judge Edward Davila in San Jose, who had previously blocked parts of the law.

  • For now, California retains one of the strongest legal frameworks in the U.S. aimed at curbing social media’s impact on children.

Broader Context

  • The ruling adds momentum to state-led efforts to regulate youth access to social media amid rising concerns over depression, anxiety, and addiction linked to digital platforms.

  • Tech firms argue these laws could fragment the internet and undermine innovation, while advocates say they are essential to protect minors in an era of algorithm-driven engagement.

Microsoft Wins Appeal Against FTC Challenge to $69 Billion Activision Deal

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Microsoft has secured a major legal victory as the 9th U.S. Circuit Court of Appeals rejected the Federal Trade Commission’s (FTC) bid to revive its antitrust challenge against the tech giant’s $69 billion acquisition of Activision Blizzard, maker of the Call of Duty franchise.

Key Points:

  • Unanimous Ruling: A three-judge panel upheld a lower court decision that denied the FTC’s request for a preliminary injunction. The court found that the FTC failed to demonstrate that the deal would likely harm competition.

  • Deal Closed in 2023: Microsoft finalized the largest-ever gaming acquisition after gaining approvals from regulators including UK authorities, despite scrutiny in multiple global jurisdictions.

  • FTC’s Position: The FTC argued the acquisition would undermine competition in console gaming, subscription services, and cloud gaming, but both the district court and appeals court found these claims lacked sufficient evidence.

  • Impact on FTC Strategy: The ruling is a blow to the FTC’s broader push under President Joe Biden’s administration to ramp up antitrust enforcement in Big Tech. The FTC’s internal administrative proceedings, paused since 2023, remain uncertain.

  • Microsoft’s Next Steps: While Microsoft has not yet commented, the ruling removes a significant legal obstacle and further solidifies its control over Activision’s gaming titles and intellectual property.

Judge Jacqueline Scott Corley had already ruled in 2023 that the acquisition would not “substantially lessen competition,” a standard the appellate court agreed had been correctly applied.