People wait in line outside the US Supreme Court in Washington, DC, on February 21, 2023 to hear oral arguments in two cases that test Section 230, the law that provides tech companies a legal shield over what their users post online.
Jim Watson | AFP | Getty Images
Supreme Court Justices voiced hesitation on Tuesday about upending a key legal shield that protects tech companies from liability for their users’ posts, and for how the companies moderate messages on their sites.
Justices across the ideological spectrum expressed concern with breaking the delicate balance set by Section 230 of the Communications Decency Act as they rule on the pivotal case, Gonzalez v. Google, even as some suggested a narrower reading of the liability shield could sometimes make sense.
The current case was brought by the family of an American killed in a 2015 terrorist attack in Paris. The petitioners argue that Google, through its subsidiary YouTube, violated the Anti-Terrorism Act by aiding and abetting ISIS, as it promoted the group’s videos through its recommendation algorithm. Lower courts sided with Google, saying Section 230 protects the company from being held liable for third-party content posted on its service.
The petitioners contend that YouTube’s recommendations actually constitute the company’s own speech, which would fall outside the bounds of the liability shield.
But the justices struggled to understand where the petitioner’s counsel, Eric Schnapper, was drawing the line on what counts as content created by YouTube itself.
Conservative Justice Samuel Alito at one point said he was “completely confused” by the distinction Schnapper tried to draw between YouTube’s own speech and that of a third party.
Schnapper repeatedly pointed to the thumbnail image YouTube shows users to display what video is coming up next, or is suggested based on their views. He said that thumbnail was a joint creation between YouTube and the third party that posted the video, in this case ISIS, because YouTube contributes the URL.
But several justices questioned whether that argument would apply to any attempt to organize information from the internet, including a search engine results page. They expressed concern that such a broad interpretation could have far-reaching effects the high court may not be prepared to predict.
Conservative Justice Brett Kavanaugh noted that courts have applied Section 230 consistently since its inception in the 1990s and pointed to the amici briefs that warned overhauling that interpretation would cause massive economic consequences for many businesses, as well as their workers, consumers and investors. Kavanaugh said those are “serious concerns” Congress could consider if it sought to rework the statute. But the Supreme Court, he said, is “not equipped to account for that.”
“You’re asking us right now to make a very precise predictive judgment that ‘Don’t worry, that it’s really not going to be that bad,'” Kavanaugh told U.S. Deputy Solicitor General Malcolm Stewart, who was arguing the high court should send the case back to the lower court for further consideration. “I don’t know that that’s at all the case. And I don’t know how we can assess that in any meaningful way.”
When Stewart suggested that Congress could amend 230 to account for changes in the reality of the internet today, Chief Justice John Roberts pushed back, noting “the amici suggests that if we wait for Congress to make that choice, the internet will be sunk.”
Even conservative Justice Clarence Thomas, who has openly written that the court should take up a case around Section 230, seemed skeptical of the petitioners’ line in the sand. Thomas noted that YouTube uses the same algorithm to recommend ISIS videos to users interested in that kind of content, as it uses to promote cooking videos to those interested in that subject. Plus, he said, he sees those as suggestions, not affirmative recommendations.
“I don’t understand how a neutral suggestion about something that you’ve expressed an interest in is aiding and abetting,” Thomas said.
The justices had tough questions for Google too, wondering if the liability protections are quite as broad as the tech industry would like to believe. Liberal Justice Ketanji Brown Jackson, for example, had a long back and forth with Lisa Blatt, counsel arguing on behalf of Google, about whether YouTube would be protected by Section 230 in the hypothetical scenario in which the company promotes an ISIS video on its homepage in a box marked “featured.”
Blatt said publishing a homepage is inherent to operating a website so should be covered by Section 230, and that organization is a core function of platforms, so if topic headings can’t be covered, the statute basically becomes a “dead letter.”
Liberal Justice Elena Kagan suggested it’s not necessary to agree completely with Google’s assessment of the fallout from altering 230 to fear the potential consequences.
“I don’t have to accept all of Ms. Blatt’s ‘the sky is falling’ stuff to accept something about, ‘Boy, there’s a lot of uncertainty about going the way you would have us go,’ in part just because of the difficulty of drawing lines in this area,” Kagan told Schnapper, adding the job may be better suited for Congress.
“We’re a court, we really don’t know about these things,” Kagan said. “These are not like the nine greatest experts on the internet.”
Section 230 proponents are optimistic
Several experts rooting for Google’s success in this case said they were more optimistic after the arguments than before at a press conference convened by Chamber of Progress, a center-left industry group that Google and other major tech platforms support.
Cathy Gellis is an independent attorney in the San Francisco Bay Area who filed an amicus brief on behalf of a person running a Mastodon server, as well as a Google-funded startup advocacy group and a digital think tank. She told CNBC that briefs like hers and others seemed to have a big impact on the court.
“It would appear that if nothing else, amicus counsel, not just myself, but my other colleagues, may have saved the day because it was evident that the justices took a lot of those lessons on board,” Gellis said.
“And it appeared overall that there was not a huge appetite to upend the internet, especially on a case that I believe for them looked rather weak from a plaintiff’s point of view.”
Still, Eric Goldman, a professor at Santa Clara University School of Law, said while he felt more optimistic on the outcome of the Gonzalez case, he remains concerned for the future of Section 230.
“I remain petrified that the opinion is going to put all of us in an unexpected circumstance,” Goldman said.
On Wednesday, the justices will hear a similar case with a different legal question.
In Twitter v. Taamneh, the justices will similarly consider whether Twitter can be held liable for aiding and abetting under the Anti-Terrorism Act. But in this case, the focus is on whether Twitter’s decision to regularly remove terrorist posts means it had knowledge of such messages on its platform and should have taken more aggressive action against them.
Conservative Justice Amy Coney Barrett asked Schnapper how the decision in that case could impact the one in the Google matter. Schnapper said if the court ruled against Taamneh, the Gonzalez counsel should be given the chance to amend their arguments in a way that fits the standard set in the other case.
A pedestrian walks past Amazon Ireland corporate offices in Dublin, as Amazon.com, Inc., said on Tuesday it plans to cut its global corporate workforce by as many as 14,000 roles and seize the opportunity provided by artificial intelligence (AI), in Dublin, Ireland, Oct. 28, 2025.
Damien Eagers | Reuters
A new bipartisan bill seeks to provide a “clear picture” of how artificial intelligence is affecting the American workforce.
Sens. Mark Warner, D-Va., and Josh Hawley, R-Mo., on Wednesday announced the AI-Related Job Impacts Clarity Act. It would require publicly traded companies, certain private companies and federal agencies to submit quarterly reports to the Department of Labor detailing any job losses, new hires, reduced hiring or other significant changes to their workforce as a result of AI.
The data would then be compiled by the Department of Labor into a publicly available report.
“This bipartisan legislation will finally give us a clear picture of AI’s impact on the workforce,” Warner said in a statement. “Armed with this information, we can make sure AI drives opportunity instead of leaving workers behind.”
The proposed legislation comes as politicians, labor advocates and some executives have sounded the alarm in recent years about the potential for widespread job loss due to AI.
In May, Anthropic CEO Dario Amodei said that the AI tools that his company and others are building could eliminate half of all entry-level white-collar jobs and cause unemployment to spike up to 20% in the next one to five years. Anthropic makes the chatbot Claude.
Layoffs have been announced recently at companies across the tech, retail, auto and shipping industries, with executives citing myriad reasons, from AI and tariffs to shifting business priorities and broader cost-cutting efforts. Job cuts announced at Amazon, UPS and Target last month totaled more than 60,000 roles.
Some experts have questioned whether AI is fully to blame for the layoffs, noting that companies could be using the technology as cover for concerns about the economy, business missteps or cost cutting initiatives.
Elon Musk, CEO of Tesla Inc., arrives at the Tesla plant in Gruenheide, Germany, on March 13, 2024.
Krisztian Bocsi | Bloomberg | Getty Images
Tesla sold just 750 electric vehicles in Germany for October 2025, less than half of what it sold a year ago, according to data out Wednesday from the country’s federal transport authority, known as KBA.
In October last year, Tesla sold 1,607 EVs in Germany.
KBA data shows 434,627 new battery electric vehicles year to date, the KBA data said, up nearly 40% from the same period last year. Of those EVs, 15,595 were Teslas, a decline of 50% for Elon Musk‘s automaker this year.
Tesla operates a massive vehicle assembly plant in Brandenburg, Germany, which is outside of Berlin, but the company is not a hometown favorite.
Musk’s incendiary political rhetoric and endorsement of AfD, Germany’s extremist, anti-immigrant party, have weighed on left-leaning consumers’ interest in the Tesla brand there.
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Tesla also faces a passel of European and Chinese competitors throughout Europe offering smaller and more affordable EVs, many priced below 35,000 euros.
During October, Tesla began selling a new, lower-cost version of its Model Y SUV in Germany. The stripped-down version of the SUV was priced at 39,990 euros for the German market — about 5,000 euros lower than the cheapest, previously available versions of the Model Y there.
It remains to be seen whether Tesla’s new, lower-priced model variants can help revitalize demand for their EVs in Germany or Europe.
Policy changes ahead may lift EV sales in Germany, overall.
Germany scrapped incentives to boost purchases of fully electric vehicles about two years ago, a policy change that led to a sharp drop in demand for fully electric vehicles, initially. The country is now poised to start up a new EV incentive program that goes into effect in January 2026, and is intended to help lower- and middle-income buyers adopt zero tailpipe emission vehicles.
Sam Altman, chief executive officer of OpenAI Inc., during a media tour of the Stargate AI data center in Abilene, Texas, US, on Tuesday, Sept. 23, 2025.
Kyle Grillot | Bloomberg | Getty Images
With OpenAI’s recent release of its AI browser, the historic level of capital expenditures being made in the current AI arms race may accelerate even further, if that is possible.
From the reciprocal, and some have said circular, nature of hundreds of billions in commitments in investment, tied to future chip purchases, to the extent to which GDP growth is reliant on this boom, some have said this is a bubble. A Harvard economist estimates 92% of US GDP growth in the first half of 2025 was due to investment in AI.
But much more needs to be understood about the connection between the breakneck investment in AI and the business models that underpins the entire economy: the advertising technology (Ad Tech) industrial complex.
For the past 25 years the infrastructure of the internet has been engineered to extract advertising revenue. Search Engine Marketing, the advertising business model at the core of Google, is perhaps the greatest business model of all time. Meta’s advertising business, based on engagement and attribution, is a close second. And right behind both of these is Amazon’s advertising business, powered by its position as the largest online retailer. While a smaller portion of Amazon‘s topline, its highly profitable advertising business makes up a disproportionate percentage of Amazon’s profits. So much so that nearly every major retailer has spun up their own version of retail media networks, all driving significantly to the bottom lines and market capitalization of massive companies like Walmart, Kroger, Uber (and UberEats), Doordash and many more.
In fact, these platforms have been using AI to refine their advertising business models for years, in the form of algorithmic models that powered their search and recommendation engines, and to increase engagement and better predict purchase decision, seeking an ever-greater share of all commerce, not just what is typically thought of as “advertising.” These three multi-trillion-dollar market cap companies either wholly, or substantially, derive their profits from advertising. And now they are using some portion of those historically profitable advertising revenues to fuel infrastructure investments at a level the world has not seen outside of War Time spending by governments.
But at the same time, the latest wave of AI has the potential to disrupt the very same trillions in market cap that is fueling it. AI will, without question, change how people search (Google), shop (Amazon) and are entertained (Meta). Answers delivered without clicking around the web. AI-assisted shopping. Infinite personalized content creation.
If AI represents such a potential existential risk, why are Google, Meta and Amazon such a huge part of the current arms race to invest in AI? The “moonshot” outcome of would be that achieving Artificial General Intelligence, or Super Intelligence, AI that can do anything a human can, but better, would unlock so much value that it would dwarf any investment.
But there is more immediate urgency to protect, or disrupt, the advertising business model fueling the trillions in market cap and hundreds of billions of current investment, before someone else does. While the seminal paper that launched this phase of AI, “Attention is All You Need” was written by mostly Google researchers, it was OpenAI and Microsoft, and now Grok as well, that launched the current AI arms race. And they are not remotely as dependent on the current advertising industrial complex. In fact, Sam Altman has called the feeds of the major platforms using AI to maximize advertising dollars, “the first at-scale misaligned AIs.” He is clearly stating which businesses he believes OpenAI is trying to disrupt.
What comes next?
This time is different, but it also comes with different risks. The major difference with the current fever in infrastructure investment vs the dotcom bubble of 2000, is that in large part the companies funding it are among the most profitable companies in the world. And so far, there has not been indications of cracks in the business model of advertising that is both funding their investments, and their market capitalizations (along with so many massive companies people wouldn’t think about being in the advertising business).
But if AI does disrupt, or even break, the current advertising model, the shock to the economy and markets would be far greater than most could imagine.
Google, Meta and Amazon are still best positioned to create new business models, and as mentioned, have been using AI for far longer to support their advertising business models with great success.
However, fundamentally changing the way people interface with search, commerce and content online will require just that, entirely new revenue models, maybe, hopefully, some that are aligned, that are not advertising based. But whatever the model, perhaps it is helpful to consider that the justification in AI infrastructure spending may not be to just unlock new revenue, but to protect the business models that make up a much more significant portion of the market capitalization of public companies than most people are aware.