theSIGNAL BUSINESS
6 November 2026
"Code is law, and whoever writes the architecture of a space shapes the freedoms of those inside it."
Business

Three Tech Giants Sue California Over Children's Feeds

Google, Meta and TikTok say a new state law on addictive design violates free speech, setting up a test of how far governments can regulate algorithms.

On Wednesday, three of the world's most powerful technology companies did something they rarely do: they filed separate lawsuits against the same defendant on the same day. Google, Meta and TikTok are asking a federal court to stop California from enforcing Assembly Bill 1709, a law that Governor Gavin Newsom signed on 10 September and that is due to take effect on 1 January 2027. The law targets what it calls "psychologically exploitative features" in services used by children under 16. Personalised recommendations and autoplay, the tools that keep a video feed running without any decision from the viewer, are named as examples.

Platforms that offer such features to minors would also have to delete those children's accounts. The only defendant is Rob Bonta, the state attorney general, whose office says it is reviewing the cases and remains "committed to defending California's commonsense laws to protect kids online". The companies' arguments are similar but not identical. All three invoke the First Amendment and Section 230 of the federal Communications Decency Act, which broadly protects platforms from liability for user content.

Meta adds that deciding how to curate billions of posts is an editorial judgment, and that children could still spend unlimited hours on rival services. TikTok, owned by China's ByteDance, argues that protected speech cannot be suppressed merely to shield the young from material a legislature finds unsuitable. Google, which owns YouTube, says parents, not the state, should decide. The Electronic Frontier Foundation, a digital rights group, has also criticised the law as a threat to privacy and free speech.

Photo: Jonas Leupe / Unsplash
A teenager scrolls through a video feed on a smartphone, the kind of use California's law targets.
📱
Under 16
Age group the California law aims to protect from addictive features
Discuss
  • Is a recommendation algorithm a form of speech, or a product design choice that governments can regulate?
  • Who should decide what is healthy for a child online: parents, platforms, or elected lawmakers? Defend your view.
Business

Nasdaq Plunges 5.5% on AI Regulation Fears

Two trillion dollars vanished from the Nasdaq in a single session. Its 5.5% fall, the worst in 19 months, followed Democratic gubernatorial wins and local votes against datacentres. Nvidia dropped 9.2%, SanDisk 22%. The shock travelled: Japan's Nikkei sank 6% and South Korea's Kospi over 8% on Friday.…
  • Can local elections and voter backlash realistically slow the global buildout of AI datacentres?
Business

Kansas Prices Topple a Century-Old Pattern

Linda Olson paid $700 for medication last winter and skipped doses to make it last. A 2024 Trump voter in Junction City, she now says fuel costs about a dollar more per gallon than a year ago. Her frustration helped Democrat Adam Hamilton win Kansas's Senate seat, the first such victory in nearly a century. He flipped six counties that Trump carried in 2024.…
  • Can rising everyday costs alone overturn decades of loyalty to one political party?
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Parents are best positioned to make the right decisions for their families.
Jose Castaneda, Google spokesperson
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theSIGNAL IN THE LAB
IVOCABULARY
enforcingpsychologically exploitative
autoplaycurateeditorial judgment
vanishedreprice
IIGRAMMAR FOCUS
Causative have/get — have something done
We use 'have' or 'get' + object + past participle to say that someone else does something for us or to us, often a service, or an event we don't control: 'She had her phone repaired.' 'Get' is more informal and is also common for unexpected or unwelcome events.
had · have · having · get · got · getting · has
  1. Google, Meta and TikTok want to California's new law blocked by a federal court before it takes effect.
  2. Governor Newsom the bill signed in September, and it is due to take effect on 1 January 2027.
  3. If the law survives, platforms will children's accounts deleted by their own engineers.
  4. Rob Bonta's office is the lawsuits reviewed by its lawyers before deciding how to respond.
  5. Investors their portfolios hit hard when the Nasdaq fell 5.5% in a single session.
  6. After the Nikkei and Kospi sank, many Asian fund managers their risk models checked urgently.
IIICOLLOCATIONS
Match the verb on the left with the noun phrase it best collocates with on the right.
  1. file
  2. enforce
  3. invoke
  4. shield
  5. skip
IVCRITICAL THINKING
Both the California lawsuits and the stock market fall show powerful industries colliding with public pressure, yet one conflict plays out in courtrooms and the other at the ballot box and on trading screens. Which of these arenas is more likely to produce a lasting change in how technology companies behave, and why? Consider who gets a voice in each arena and who is left out.
VCREATIVE · HEADLINES
Write a headline for the top story in each of the following styles. One line each, no explanation:
  • TABLOID NEWSPAPER
  • LUXURY MAGAZINE
  • ACTIVIST BLOG
VIWRITING
Imagine you are the California attorney general's spokesperson. Write a short public statement of 100-120 words explaining why the state will defend Assembly Bill 1709, addressing at least one argument the tech companies have made.
VIIDEGREES OF EXTREMITY
Complete each ladder from mild to strong.
  • The share price dipped→→
  • They criticised the law→→
  • The market was unsettled→→
  • Voters were irritated by rising prices→→
  • A noticeable change in voting habits→→
  • The ruling could affect how platforms operate→→
VIIISPEAKING
  1. Should tech companies ever be forced to delete underage users' accounts? Why?
  2. Do you think autoplay should be switched off by default for everyone?
  3. How would a feed ban change the way teenagers in your country spend time?
  4. Is it fair for investors to panic over political election results?