The US Supreme Court is preparing to hear a case that could have far-reaching implications for online advertising, which is the internet’s most profitable business. The case, called Gonzalez v Google, will be heard on Tuesday and will determine whether internet companies are liable for the content their algorithms recommend to users. The technology industry contends that it is protected by a legal shield known as Section 230, which is part of communications law.
However, the case could potentially result in companies like Facebook and Google being held responsible for user-generated content, which could harm their business models, including the automated advertising they rely on for the bulk of their revenue.
The case centres on a lawsuit brought by the family of Nohemi Gonzalez, who was killed in the terrorist attacks in Paris in 2015. The family argues that Google’s YouTube should be held accountable for suggesting terrorist-linked videos through its automated recommendation system.
The social media companies have warned that a ruling against them could have significant implications for the entire advertising ecosystem. According to Marc Beckman, the CEO of advertising firm DMA United, the case poses an existential threat to companies like Facebook and Google that rely on serving targeted ads to potential customers using automated tools.