Business Rundown: The End of the "Wild West"? Why Big Tech’s Legal Shield is Cracking

The world’s biggest tech companies are facing their greatest legal and political challenges since their inception.

Opening statements are expected to start early next week in a Los Angeles courtroom for what is being called a landmark social media trial. Meta and Google are being sued by a 19-year-old plaintiff, known as K.G.M., who alleges that Facebook, Instagram, YouTube, and others are intentionally designed to be addictive. She claims the use of these platforms caused her profound harm—including anxiety, depression, and suicidal thoughts. TikTok and Snapchat were also sued but have since settled the claims against them.

Google and Meta deny these allegations. They argue there is no connection between their technology and addiction. There is a lot at stake; this is just the first case that could eventually affect more than a thousand other claims. A class action involving approximately 1,600 plaintiffs with similar claims is pending.

Meanwhile, in Washington, a bipartisan push is growing to reform Section 230 protections for Big Tech. The law currently shields social media companies from liability regarding user-generated content.

John Yoo—former Deputy Assistant Attorney General and current law professor at UC Berkeley—joins FOX Business Network’s Lydia Hu to discuss the high stakes for Big Tech as they are caught in the legal crosshairs and face increasing political pressure.

Learn more about your ad choices. Visit podcastchoices.com/adchoices