Connect with us

Published

on

The U.S. Supreme Court against a blue sky in Washington, D.C., US. Photographer: Stefani Reynolds/Bloomberg

Bloomberg Creative | Bloomberg Creative Photos | Getty Images

A legal test that Google’s lawyer told the Supreme Court was roughly “96% correct” could drastically undermine the liability shield that the company and other tech platforms have relied on for decades, according to several experts who advocate for upholding the law to the highest degree.

The so-called “Henderson test” would significantly weaken the power of Section 230 of the Communications Decency Act, several experts said in conversations and briefings following oral arguments in the case Gonzalez v. Google. Some of those who criticized Google’s concession even work for groups backed by the company.

Section 230 is the statute that protects tech platforms’ ability to host material from users — like social media posts, uploaded video and audio files, and comments — without being held legally liable for their content. It also allows platforms to moderate their services and remove posts they consider objectionable.

The law is central to the question that will be decided by the Supreme Court in the Gonzalez case, which asks whether platforms like Google’s YouTube can be held responsible for algorithmicaly recommending user posts that seem to endorse or promote terrorism.

In arguments on Tuesday, the justices seemed hesitant to issue a ruling that would overhaul Section 230.

But even if they avoid commenting on that law, they could still issue caveats that change the way it’s enforced, or clear a path for changing the law in the future.

What is the Henderson test?

One way the Supreme Court could undercut Section 230 is by endorsing the Henderson test, some advocates believe. Ironically, Google’s own lawyers may have given the court more confidence to endorse this test, if it chooses to do so.

The Henderson test came about from a November ruling by the Fourth Circuit appeals court in Henderson v. The Source for Public Data. The plaintiffs in that case sued a group of companies that collect public information about individuals, like criminal records, voting records and driving information, then put in a database that they sell to third parties. The plaintiffs alleged that the companies violated the Fair Credit Reporting Act by failing to maintain accurate information, and by providing inaccurate information to a potential employer.

A lower court ruled that Section 230 barred the claims, but the appeals court overturned that decision.

The appeals court wrote that for Section 230 protection to apply, “we require that liability attach to the defendant on account of some improper content within their publication.”

In this case, it wasn’t the content itself that was at fault, but how the company chose to present it.

The court also ruled Public Data was responsible for the content because it decided how to present it, even though the information was pulled from other sources. The court said it’s plausible that some of the information Public Data sent to one of the plaintiff’s potential employers was “inaccurate because it omitted or summarized information in a way that made it misleading.” In other words, once Public Data made changes to the information it pulled, it became an information content provider.

Should the Supreme Court endorse the Henderson ruling, it would effectively “moot Section 230,” said Jess Miers, legal advocacy counsel for Chamber of Progress, a center-left industry group that counts Google among its backers. Miers said this is because Section 230’s primary advantage is to help quickly dismiss cases against platforms that center on user posts.

“It’s a really dangerous test because, again, it encourages plaintiffs to then just plead their claims in ways that say, well, we’re not talking about how improper the content is at issue,” Miers said. “We’re talking about the way in which the service put that content together or compiled that content.”

Eric Goldman, a professor at Santa Clara University School of Law, wrote on his blog that Henderson would be a “disastrous ruling if adopted by SCOTUS.”

“It was shocking to me to see Google endorse a Henderson opinion, because it’s a dramatic narrowing of Section 230,” Goldman said at a virtual press conference hosted by Chamber of Progress after the arguments. “And to the extent that the Supreme Court takes that bait and says, ‘Henderson’s good to Google, it’s good to us,’ we will actually see a dramatic narrowing of Section 230 where plaintiffs will find lots of other opportunities to to bring cases that are based on third-party content. They’ll just say that they’re based on something other than the harm that was in the third party content itself.”

Google pointed to the parts of its brief in the Gonzalez case that discuss the Henderson test. In the brief, Google attempts to distinguish the actions of a search engine, social media site, or chat room that displays snippets of third-party information from those of a credit-reporting website, like those at issue in Henderson.

In the case of a chatroom, Google says, although the “operator supplies the organization and layout, the underlying posts are still third-party content,” meaning it would be covered by Section 230.

“By contrast, where a credit-reporting website fails to provide users with its own required statement of consumer rights, Section 230(c)(1) does not bar liability,” Google wrote. “Even if the website also publishes third-party content, the failure to summarize consumer rights and provide that information to customers is the website’s act alone.”

Google also said 230 would not apply to a website that “requires users to convey allegedly illegal preferences,” like those that would violate housing law. That’s because by “‘materially contributing to [the content’s] unlawfulness,’ the website makes that content its own and bears responsibility for it,” Google said, citing the 2008 Fair Housing Council of San Fernando Valley v. Roommates.com case.

Concerns over Google’s concession

Section 230 experts digesting the Supreme Court arguments were perplexed by Google’s lawyer’s decision to give such a full-throated endorsement of Henderson. In trying to make sense of it, several suggested it might have been a strategic decision to try to show the justices that Section 230 is not a boundless free pass for tech platforms.

But in doing so, many also felt Google went too far.

Cathy Gellis, who represented amici in a brief submitted in the case, said at the Chamber of Progress briefing that Google’s lawyer was likely looking to illustrate the line of where Section 230 does and does not apply, but “by endorsing it as broadly, it endorsed probably more than we bargained for, and certainly more than necessarily amici would have signed on for.”

Corbin Barthold, internet policy counsel at Google-backed TechFreedom, said in a separate press conference that the idea Google may have been trying to convey in supporting Henderson wasn’t necessarily bad on its own. He said they seemed to try to make the argument that even if you use a definition of publication like Henderson lays out, organizing information is inherent to what platforms do because “there’s no such thing as just like brute conveyance of information.”

But in making that argument, Barthold said, Google’s lawyer “kind of threw a hostage to fortune.”

“Because if the court then doesn’t buy the argument that Google made that there’s actually no distinction to be had here, it could go off in kind of a bad direction,” he added.

Miers speculated that Google might have seen the Henderson case as a relatively safe one to cite, given than it involves an alleged violation of the Fair Credit Reporting Act, rather than a question of a user’s social media post.

“Perhaps Google’s lawyers were looking for a way to show the court that there are limits to Section 230 immunity,” Miers said. “But I think in in doing so, that invites some pretty problematic reading readings into the Section 230 immunity test, which can have pretty irreparable results for future internet law litigation.”

WATCH: Why the Supreme Court’s Section 230 case could reshape the internet

Why the Supreme Court's Section 230 case could reshape the internet

Continue Reading

Technology

CNBC Daily Open: A chance for peace in the Middle East and the U.S.-China trade war

Published

on

By

CNBC Daily Open: A chance for peace in the Middle East and the U.S.-China trade war

U.S. President Donald Trump gestures as he poses next to a sign before a family photo at a world leaders’ summit on ending the Gaza war, amid a U.S.-brokered prisoner-hostage swap and ceasefire deal between Israel and Hamas, in Sharm el-Sheikh, Egypt, Oct. 13, 2025.

Suzanne Plunkett | Reuters

This might not be Christmas, but the war in the Middle East is over — at least according to U.S. President Donald Trump.

On Monday, Trump declared at the Knesset, Israel’s parliament, that the “long and painful nightmare” was finally over for both the Israelis and Palestinians. More straightforwardly, Trump gave an unequivocal “yes” when asked by reporters if the war in the Middle East has ended, Reuters reported.

A similarly hopeful mood permeated markets, though for different reasons. After hitting China with 100% additional tariffs and triggering a sell-off on Friday, Trump appeared to walk back his stance, posting on Truth Social that “it will all be fine” with China.

And thus was TACO back on traders’ menus: Major U.S. stock indexes rebounded, with technology stocks leading the charge. Quantum computing names popped after JPMorgan Chase announced it will be investing $10 billion in sectors crucial to national interests.

Broadcom, meanwhile, surged almost 10% after it jointly announced a partnership with — who else? — OpenAI to build and deploy custom chips. But where this puts Nvidia, OpenAI’s other near and dear one, and on whose chips the ChatGPT maker relies, remains a question.

Though Christmas has yet to arrive, OpenAI is starting to look like the tech sector’s Santa Claus, who has his sack full of presents — and, more importantly, cash, according to Oracle.

— CNBC’s Holly Ellyatt contributed to this report.

What you need to know today

And finally…

U.S. President Donald Trump shakes hands with Argentina’s President Javier Milei during the 80th United Nations General Assembly, in New York City, New York, U.S., Sept. 23, 2025.

Alexander Drago | Reuters

The U.S. has stepped in with an extraordinary bailout of Argentina. Here’s what it means

In a move that Treasury Secretary Scott Bessent announced Thursday on social media site X, the U.S. is providing a $20 billion currency swap line with Argentina’s central bank — essentially exchanging stable U.S. dollars with volatile pesos.

The move comes amid liquidity concerns in Argentina that threatened stability for the country as it faces key midterm elections. There are equal parts economic and political stakes with the venture, which marks the first U.S. intervention of this nature since rescuing Mexico in 1995.

Jeff Cox

Continue Reading

Technology

Google to invest $15 billion to build data center hub in India; largest outside of the U.S.

Published

on

By

Google to invest  billion to build data center hub in India; largest outside of the U.S.

Prakash Singh | AFP | Getty Images

Google will invest $15 billion to build data center capacity for a new artificial intelligence hub in southern India, Google Cloud CEO Thomas Kurian announced at an event Tuesday.

The investment will roll out over the next five years, and will be Google’s largest AI hub in the world outside of the U.S, Kurian added.

Earlier on Monday, the Minister for Human Resources Development of the Indian state of Andhra Pradesh, Nara Lokesh, put the 1-gigawatt project at $10 billion. 

The deal comes after “a year of intense discussions and relentless effort,” and “is just the beginning,” Lokesh said in a post on the social media platform X. 

The Indian outlet Economic Times previously reported that the investment would be made by Google’s Indian subsidiary Raiden Infotech, which plans to develop three campuses across the city of Visakhapatnam.

According to another report from ET on Tuesday, state officials planned to continue doubling down on such projects and to significantly scale up the state’s computing capacity over the next three years.

Companies are amping up investments in infrastructure to keep pace with surging global demand for cloud services as AI services become increasingly popular.

As part of its second-quarter earnings in July, Google increased its forecast for capital expenditures in 2025 to $85 billion, up from $75 billion in February, due to “strong and growing demand for our Cloud products and services.”

That same month, the company also announced plans to invest $25 billion in data center and artificial intelligence infrastructure over the next two years in states across the biggest electric grid in the U.S.

India is increasingly attracting multinational players, such as Microsoft and AWS, to invest in the country’s cloud and AI infrastructure.

Continue Reading

Technology

CNBC Daily Open: There’s a hopeful mood in the Middle East and the markets

Published

on

By

CNBC Daily Open: There's a hopeful mood in the Middle East and the markets

U.S. President Donald Trump speaks while World leaders listen during a summit of European and Middle Eastern leaders on Gaza on October 13, 2025 in Sharm El-Sheikh, Egypt.

Chip Somodevilla | Getty Images

This might not be Christmas, but the war in the Middle East is over — at least according to U.S. President Donald Trump.

On Monday, Trump declared at the Knesset, Israel’s parliament, that the “long and painful nightmare” was finally over for both the Israelis and Palestinians. More straightforwardly, Trump gave an unequivocal “yes” when asked by reporters if the war in the Middle East has ended, Reuters reported.

A similarly hopeful mood permeated markets, though for different reasons. After hitting China with 100% additional tariffs and triggering a sell-off on Friday, Trump appeared to walk back his stance, posting on Truth Social that “it will all be fine” with China.

And thus was TACO back on traders’ menus: Major U.S. stock indexes rebounded, with technology stocks leading the charge. Quantum computing names popped after JPMorgan Chase announced it will be investing $10 billion in sectors crucial to national interests.

Broadcom, meanwhile, surged almost 10% after it jointly announced a partnership with — who else? — OpenAI to build and deploy custom chips. But where this puts Nvidia, OpenAI’s other near and dear one, and on whose chips the ChatGPT maker relies, remains a question.

Though Christmas has yet to arrive, OpenAI is starting to look like the tech sector’s Santa Claus.

— CNBC’s Holly Ellyatt contributed to this report.

What you need to know today

War in the Middle East is over, Trump says. At Israel’s parliament, Trump gave a speech in which he said that the “long and painful nightmare” for both the Israelis and Palestinians was over. He also urged, at a separate event, for leaders to put “old feuds” behind.

Broadcom joins the OpenAI party. The two companies announced Monday that they’re planning to develop and deploy OpenAI-designed chips, amounting to 10 gigawatts, starting late next year. Shares of Broadcom popped almost 10% on the news.

JPMorgan says it will invest $10 billion in critical industries. The four areas of focus — which the bank considers crucial to U.S. security — are: defense and aerospace, “frontier” technologies such as AI, energy technology and supply chain and advanced manufacturing.

Stocks claw back some losses. On Monday stateside, major U.S. stock indexes rose, rebounding from Friday’s carnage. The S&P 500 regained 56% of Friday’s decline. Europe’s Stoxx 600 index climbed 0.44%, lifted by mining stocks.

[PRO] European sectors less affected by trade war. The continent isn’t in the crosshairs of Trump’s latest tariffs, but a weakening U.S. dollar could affect Europe’s exports. UBS picks three sectors more shielded from that — leaving out a notable one.

And finally…

U.S. President Donald Trump shakes hands with Argentina’s President Javier Milei during the 80th United Nations General Assembly, in New York City, New York, U.S., Sept. 23, 2025.

Alexander Drago | Reuters

The U.S. has stepped in with an extraordinary bailout of Argentina. Here’s what it means

In a move that Treasury Secretary Scott Bessent announced Thursday on social media site X, the U.S. is providing a $20 billion currency swap line with Argentina’s central bank — essentially exchanging stable U.S. dollars with volatile pesos.

The move comes amid liquidity concerns in Argentina that threatened stability for the country as it faces key midterm elections. There are equal parts economic and political stakes with the venture, which marks the first U.S. intervention of this nature since rescuing Mexico in 1995.

Jeff Cox

Continue Reading

Trending