California Judge Tentatively Denies TikTok’s Section 230 Dismissal Bid

This article first appeared on GuruFocus.

A California judge has indicated that TikTok Inc. may need to defend itself against allegations that its platform design harms young users, potentially narrowing the scope of the company’s long-standing reliance on Section 230 protections. In a tentative ruling, Santa Clara County Superior Court Judge Beth McGowen signaled that TikTok’s motion to dismiss under the Communications Decency Act could face resistance, reasoning that the state’s claims are directed at the platform’s structural features rather than its role as a publisher of user content. A hearing is scheduled for Thursday, giving TikTok an opportunity to challenge the court’s preliminary conclusions before a final ruling is issued.

The lawsuit, filed in 2024 by California, New York, a dozen additional states and the District of Columbia, alleges under consumer protection laws that TikTok and its Beijing-based parent ByteDance Ltd. mislead users regarding child safety tools. The states point to features such as autoplay, infinite scrolling and livestreams, which they contend are designed in ways that could keep young users engaged for longer periods. They also cite beauty filters, arguing that these tools may negatively affect children’s self-esteem and mental health. The judge’s tentative reasoning suggests the court may treat these allegations as challenges to product design decisions rather than disputes over third-party content.

For investors, the broader legal landscape remains relevant. TikTok, along with Snap Inc. (NYSE:SNAP), Google (NASDAQ:GOOG) and Meta Platforms Inc. (NASDAQ:META), is facing thousands of lawsuits brought on behalf of young people who attribute mental health struggles to social media use. The first jury trial tied to those claims is currently under way in Los Angeles Superior Court. While the ultimate outcome of the California case remains uncertain, the court’s early posture could signal that litigation risks tied to platform design not just content moderation may increasingly influence how major social media companies are evaluated from a regulatory and risk perspective.