Business Case Studies & Business Publications

Innovating amid Regulatory Uncertainty

Parmar, Bidhan L.,...

Case

Innovating amid Regulatory Uncertainty

Parmar, Bidhan L.; Orth, Connor; Mead, Jenny

E-0505 | Published October 16, 2024 | 11 pages Case

Collection: Darden School of Business

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This disguised case outlines the dilemma facing Avery Owens, the head of product for SoMeCo, a social media company, as she seeks to create a framework to innovate responsibly – balancing the emerging threats and opportunities of AI amid a turbulent regulatory backdrop. Owens must navigate the uncertainties of current and future policy – specifically, Section 230 of the 1996 Communications Decency Act, the liability shield protecting online platforms from bearing responsibility for harmful third-party content. Along with her team, she must perform a comprehensive review of SoMeCo’s business model, examine the underlying technology, research the history of Section 230, and assess the nonmarket strategies leveraged by SoMeCo thus far. The case is set during the 2023 term of the United States Supreme Court in which the court had agreed to hear a challenge to Section 230 for the first time. Future regulation is uncertain, and Owens and her team must examine and weigh the possible outcomes in the impact on their business. This case provides an opportunity for business students to confront the ever-increasing rate of innovation and how to manage through it without clear regulations or guidelines, as well as second and third order effects for all SoMeCo’s stakeholders.