Its common for social media timelines and YouTube to be flooded with suggestions and ads related to the content a user has been browsing or looking for. This is done through an automated process where the algorithm collects data on online behaviour and processes it to promote content or products, hence bringing ad revenue for sites. But this model, which is the key money making mechanism for social media, is at risk because of a lawsuit against Google, filed by a terror victim's family.
Suggesting terror propaganda?
The search engine giant has been dragged to court by the kin of Nohemi Gonzalez, who lost her life in the 2015 terrorist attack in Paris. Now her family is holding Google responsible for YouTube's algorithm recommending Islamic State videos to them. The case in the US Supreme Court, not only threatens Google's ad revenue worth $168 billion, but also puts the entire social media at risk.
What does the law say?
Although online giants are protected by Section 230 of US communications law, a decision by the court in favour of the Gonzalez family will hit Facebook, Instagram, Google and others hard. As per Section 230, the providers of interactive online services, aren't publishers of the content posted by a third party, including ads. But if the court decides to hold social media and video platforms responsible, this will disrupt the entire ad revenue model.
The way ahead
This single ruling might force platforms to litigate millions of targeted ads thrown at users, and trigger a surge in legal costs for ad agencies. Social media having to take responsibility for content will end personalised ads sent out by an algorithm, and everything will be like the 90s all over again.
Google and Meta get 50 per cent of all advertising revenues in the digital ecosystem, and are also facing legal challenges because of ads related to healthcare, politics and job recruitments. They are already struggling with ad revenues and this verdict could open a whole new Pandora's box for the tech giants.
