The Big Story: Supreme Court hears about the value of Section 230 for startups, Internet creators
The Supreme Court received dozens of briefs this week in support of Section 230, including one Engine signed explaining how the law supports startups and small Internet platforms and another that Engine helped organize about the ways Internet creators benefit from Section 230. The briefs come as the court considers Gonzalez v. Google and the applicability of Section 230—the 1996 law that enables Internet platforms to host user content without fear of ruinous litigation.
Gonzalez v. Google will be argued before the Supreme Court in February and asks whether Section 230 shields Internet platforms from legal liability when they host and recommend user content. The brief Engine signed onto—alongside Copia Institute and individual Mastodon administrator M. Chris Riley—outlines how Section 230 supports startup Internet platforms. By protecting them from being held liable for user content posted on their platforms, the law ensures they can host and moderate content without the threat of being bankrupted by lawsuits over content posted by one of their users. Startups and other small platforms that host user content already spend a disproportionately large amount of their limited resources moderating user content and would be vulnerable to ruinous litigation costs without Section 230.
Engine also organized a brief through our Digital Entrepreneur Project to highlight how the outcome of the case could impact Internet creators, storytellers, educators, authors, artists, and more. Eighteen creators and the Authors Alliance (which works with authors who want to share their creations broadly) shared their stories and experiences on how Section 230 enabled them to grow their businesses and audiences online. The list of signatories includes Florida-based Harry Jho who founded Mother Goose Club—a YouTube channel dedicated to educating small children with methods like nursery rhymes with over 30 million subscribers. It also includes medical professionals and doctors like Maryland-based Rena Malik, a urologist and pelvic surgeon, who has been able to reach hundreds of millions addressing health and medical care concerns and questions.
Among the dozens of other briefs filed highlighting the importance of Section 230 were those from the original authors of the law, and several academics, Internet companies, and advocacy organizations. As we underscored in our statement following the briefs, frameworks created by Section 230 allow startups to thrive and anyone to sell, create, and share online—diversifying the innovation ecosystem and bolstering the overall U.S. economy.
Policy Roundup:
UK Internet bill advances, will impact U.S. startups with UK users. This week brought movement in the UK’s Online Safety Bill—a longtime legislative effort aimed at creating a “safer online environment.” The legislation will impact a broad range of companies that serve users in the U.K., creating new obligations around content moderation, increasing use of potentially intrusive age-verification technologies, and undermining encryption—and thanks to the recent changes could subject some tech company executives to criminal liability. The legislative effort is a priority for the UK government which aims to finalize the bill later this year. Overall, the bill will heighten barriers to U.S. startups serving UK users by increasing the already-limited resources that they must devote to compliance and reducing the ability of U.S. startups to expand into the UK market.
NTIA asks for input on data privacy. The National Telecommunications and Information Administration (NTIA) this week released a request for comment on data privacy issues, with a particular focus on how they intersect with civil rights. During an event announcing the inquiry, NTIA head Alan Davidson called for a federal privacy law. Engine has long supported a uniform federal privacy framework to help protect consumers while creating consistent obligations for startups.
Congress hasn’t moved on immigration, STEM shortages soar. This week, U.S. Labor Secretary Marty Walsh warned of a shortage of STEM talent and pointed to immigration reform as essential to remedying the threat. Numerous STEM-dependent organizations, including technology companies and startups, have echoed that sentiment, calling on Congress to both reform immigration law so that highly-skilled workers are welcomed and can stay in the U.S., as well as to invest in U.S.-born STEM initiatives to meet gaps in our talent pipeline. Congress has yet to advance meaningful immigration reform, risking the U.S.’ competitive edge as foreign talent turns to other countries that are more hospitable and offer pathways to citizenship.
Join Engine, CCIA, and a panel of startup founders for a virtual event on the tools startups use. Join us and the Computer and Communications Industry Association on Thursday, January 26 at 1:30 pm E.T., for the release of a report and a conversation with startup founders about the digital tools and services startups use to build their companies and the takeaways for policymaking. Register today.
Startup Roundup:
#StartupsEverywhere: New York, New York. After many encounters with financial advisors who failed to understand her on a cultural and personal level, Tani Chambers wanted to create a judgment-free space for Black women to achieve their wealth goals. As Founder and CEO of RAVN, a wealth-planning platform that matches women with finance professionals and peer accountability groups based on their values and goals, she’s done just that. We spoke with Tani about her background, how RAVN operates within state-based privacy frameworks, and how policymakers can step in to make capital access more equitable for startup founders.
