On Friday, a federal appeals court upheld a Texas statute that prohibits major social media corporations from "viewpoint-based" user bans and censorship.
A loss for the tech sector groups that claimed the Republican-backed legislation would convert platforms into havens for harmful content.
The Republican-controlled Texas legislature enacted the bill, and the state's Republican governor approved it.
Social media corporations have worked to protect their ability to control user content when they think it might incite violence.
They have voiced worries that unregulated platforms may empower radicals like Nazi followers, terrorists, and aggressive foreign governments.
Some conservatives branded their actions abusive, citing Twitter's decision to permanently ban Donald Trump from the platform.
NetChoice and the Computer & Communications Industry Association are among the industry organisations that were unsuccessful in Friday's verdict.