Apple, Meta and Google warned the 9th U.S. Circuit Court of Appeals this week that if online platforms can be held liable for processing users’ purchases of virtual chips sold by casino game apps, the entire internet economy could be at risk.
– and unless the 9th Circuit overturns his decision, the consequences could be dire.
Apple’s lawyers at Weil, Gotshal & Manges said the theory proffered by the casino apps plaintiffs for circumventing Section 230 immunity is "limitless." Meta counsel from Gibson, Dunn & Crutcher and Orrick Herrington & Sutcliffe echoed that argument, warning the 9th Circuit that “clever lawyers” will find ways to use Davila’s reasoning to recast claims that would be precluded under Section 230.
The platforms argued that because different countries, states and geographical regions have different laws, Davila’s reasoning would force them to engage in intensive monitoring of apps and individual users to avert claims that they facilitated illegal conduct by processing payments. Platforms would even need to check on users’ geographic location as they interacted with particular apps, Apple said.
That distinguishes the online gambling case from the conduct at issue in the HomeAway case that Davila relied upon, according to the platforms. The 9th Circuit ruled in that case that Section 230 did not pre-empt a Santa Monica law barring websites from accepting booking fees for certain short-term housing rentals. The sites had argued that the city law would contravene Section 230 by requiring them to monitor online content to be sure they did not offer illegal rentals.
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