Context: https://literature.cafe/post/987996
this post was submitted on 27 Aug 2023
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Yes, but people can still browse content from your instance without logging in. There is nothing stopping people from viewing illegal material through your instance.
Section 230 makes this but an issue. It would be like suing the phone company. Especially if you don't moderate. If you moderate then it can be said what is left had your endorsement. If you don't moderate, then you are simply a victim of vandalism.
Section 230 is only applicable to the US
Free countries have an equivalent, or else free online discussion space would be impossible. The section 230 compromise is inevitable or the internet would perish.