Facebook Worries Smaller Rivals With Openness on Liability

  • Etsy, Tripadvisor in coalition to raise Washington profile
  • Prospect of change to legal shield has companies maneuvering

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Facebook Inc. says it’s time to rethink the legal immunity that protects it from lawsuits over what users post online, a position that’s leaving smaller websites concerned about the cost of accepting more responsibility for what appears on their platforms.

The social-media giant has been prominent in the debate in Washington over the liability shield contained in Section 230 of the Communications Decency Act, which may be the subject of a proposal by the U.S. Federal Communications Commission in coming days.