A federal judge has denied requests from big tech companies, Apple (AAPL), Alphabet’s (GOOGL) Google, and Meta Platforms (META), to dismiss class-action lawsuits alleging they promoted illegal gambling, Reuters reported. These suits, filed in 2021, claimed that the companies hosted and profited from casino-style apps by collecting commissions.
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Plaintiffs’ Core Claims
In the lawsuits, dozens of plaintiffs allege that Apple’s App Store, Google’s Play Store, and Meta’s Facebook platforms host casino-style apps that mimic Vegas-style slot machines and encourage illegal gambling.
Further, they claimed that the tech companies acted as brokers, processing payments for in-app purchases and collecting commissions of up to 30% from these apps.
Judge’s Ruling
The companies’ main defense, that Section 230 of the Communications Decency Act shields them from liability, was rejected by the judge. For context, this law typically protects online platforms from liability for content posted by third parties.
The judge found that when these tech giants processed payments and collected commissions on these apps, estimated by plaintiffs to be over $2 billion, they were not acting as mere “publishers.”
Due to the importance of the Section 230 issues, the judge will allow the tech companies to immediately appeal the decision to the 9th U.S. Circuit Court of Appeals.
What Is the Best Tech Stock to Buy?
For investors interested in investing in the Technology sector, we have shortlisted the best stocks to buy in this sector, using the TipRanks Stocks Comparison tool. Analysts are most bullish on Meta Platforms (META), Microsoft (MSFT), Mastercard (MA), and Alphabet (GOOGL), all of which carry a Strong Buy rating. Among the four, Microsoft offers the highest upside potential from its current price.
