(Updates with Meta's response in the fifth paragraph.)
Alphabet (GOOG, GOOGL) unit Google's YouTube and Meta Platforms (META) were denied a new trial after a jury found that the companies were liable for designing social media platforms that are addictive to young people, Reuters reported Wednesday.
A California state court judge rejected the companies' argument that they were protected under Section 230 of the Communications Decency Act, a federal law that protects online platforms from liability over content generated by users, according to the report.
Judge Carolyn Kuhl stated that the law does not address the companies' platform design choices and the jury was repeatedly instructed not to consider content, the report said.
Google plans to appeal the decision, a company spokesperson toldin an emailed response.
Meanwhile, a Meta spokesperson said the company expects the ruling to be overturned on appeal. "The plaintiffs' legal theory attempts to improperly circumvent Section 230 and the First Amendment," the spokesperson toldin an emailed response. "We stand firmly by our record and will continue to pursue all available appellate options."
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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