5th Circuit Upholds Texas' Controversial Online Platform Liability Law

5th Circuit Upholds Texas' Controversial Online Platform Liability Law

AUSTIN, Texas — The Fifth Circuit Court of Appeals today upheld a controversial Texas law prohibiting social media platforms from “censoring speech based on the viewpoint of its speaker,” in a decision that ignored long-standing precedent that First Amendment protections prohibit only censorship by the government, not by private companies.

According to the court’s decision, even though platforms contend that “the statute is facially unconstitutional and hence cannot be applied to anyone at any time and under any circumstances,” the majority-conservative justices on the Fifth Circuit bench “reject the idea that corporations have a freewheeling First Amendment right to censor what people say.”

“Because the district court held otherwise,” the judges declared, “we reverse its injunction and remand for further proceedings.”

The ideologically-worded decision also included the judges’ opinion that “the platforms offer a rather odd inversion of the First Amendment. That Amendment, of course, protects every person’s right to ‘the freedom of speech.’ But the platforms argue that buried somewhere in the person’s enumerated right to free speech lies a corporation’s unenumerated right to muzzle speech.”

The implications of the platforms’ argument, they continued, “are staggering. On the platforms’ view, email providers, mobile phone companies, and banks could cancel the accounts of anyone who sends an email, makes a phone call, or spends money in support of a disfavored political party, candidate, or business. What’s worse, the platforms argue that a business can acquire a dominant market position by holding itself out as open to everyone.”

A Republican Law Upheld by Conservative Judges

The Republican-backed state law, HB 20, would make social media platforms liable for moderating content based on what the law defines as “viewpoints.” It was drafted with the support of Texas governor Greg Abbott as an answer to conservative complaints about supposed “liberal bias” in platform moderation, including the lifetime Twitter ban of former President Donald Trump.

The law has been subject to a back-and-forth judicial process. As XBIZ reported, back in May, the U.S. Supreme Court temporarily blocked HB 20, shortly after a Fifth Circuit three-judge appeals panel ruled that the law could go into effect “immediately” — in turn staying a previous district court injunction that had put enforcement of the law on hold.

The Fifth Circuit panel decision in May was communicated without explanation as to the court’s reasoning and with two of the judges remaining anonymous. At the time, tech news site Protocol reported that, during the hearings, “the jurists appeared to struggle with basic tech concepts, including whether Twitter counts as a website.” 

That decision, ratified today, was seen “a win for conservative critics of the current interpretation of tech law, which underlies the operations of social media platforms such as Twitter and Facebook,” Protocol continued.

Industry Lawyer Weighs In

"It appears the Fifth Circuit got the First Amendment analysis alarmingly wrong," said industry attorney and First Amendment expert Lawrence Walters, of the Walters Law Group. "It deems the platforms’ actions in hosting and facilitating speech to be 'conduct,' not speech, in disregard of decades of precedent recognizing the First Amendment rights of platforms to engage in their own speech through editorial decisions."

Walters added that he suspects "the decision will be reversed if taken up by the Supreme Court."

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

AV Bulletin: Health Warnings, VPNs and Exemptions

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been introduced around the United States, as well as at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Blake Blossom, Derek Kage Cap AEBN's Top Stars for 4th Quarter of 2025

AEBN has revealed its most popular performers in straight and gay theaters for the fourth quarter of 2025.

Adult Time Renews Silver Sponsorship for Pineapple Support

Adult Time has renewed its sponsorship of Pineapple Support at the Silver level.

Pornhub to Block UK Users Without Accounts Starting Feb. 2

Pornhub parent company Aylo will block access to its free video-sharing platforms in the United Kingdom starting Feb. 2 unless users have already set up accounts prior to that date, the company announced Tuesday.

Aylo Wins Another Major Piracy Lawsuit

For the second time in recent weeks, Pornhub parent company Aylo has prevailed in a copyright infringement case against sites pirating its content.

FSC Supports OpenAge Initiative and Adoption of AgeKeys for Cross-Site Age Assurance

The Free Speech Coalition (FSC) announced today that it will support the OpenAge Initiative and its AgeKey cryptographic age assurance solution.

SWR Data Publishes 2026 'Hot List' Report

Adult industry market research outfit SWR Data has published its 2026 Hot List report on the top creator platforms of 2025.

Adult Chat Platform Arousr Sets Human-Only Host Policy

Adult chat platform Arousr has announced a policy to only use verified human hosts, not chatbots.

Arizona State Legislator Proposes Porn Ban

A member of Arizona’s House of Representatives on Wednesday introduced a bill that would make it illegal to produce or distribute adult content in that state.

SinfulX AI to Roll Out New Video Generator

AI companion platform SinfulX AI is launching an upgraded video generator in February.

Show More