Ninth Circuit Rules that Enigma Software can Proceed with its Lawsuit Against Malwarebytes

The Court of Appeals for the Ninth Circuit has ruled in Enigma Software’s case against Malwarebytes Inc. that the immunity protections under Section 230 of the Communications Decency Act are “not limitless.” (For Court’s Opinion, go to https://www.enigmasoftware.com/legal/court-opinion-us-court-appeals-ninth-circuit-enigma-software-vs-malwarebytes-case-17-17351.pdf.) In its Opinion (written by Justice Schroeder), the Court reasoned that a company may not engage in anticompetitive practices aimed at a competitor and then claim immunity under Section 230 from liability for the harm it unlawfully caused. The Court further ruled that Enigma Software’s allegations of anticompetitive practices undertaken by Malwarebytes to harm Enigma Software were sufficient to support Enigma Software’s legal claims against Malwarebytes. The Court rejected Malwarebytes’ position that it could unilaterally block any software it chose for any reason under the “otherwise objectionable” language of Section 230 and never have to account to anyone for the harm it causes – and the Court reversed the prior dismissal of the case and remanded it to the trial court