Two trade groups, NetChoice and the Computer and Communications Industry Association, filed a suit to block the law in September.
NetChoice President and CEO Steve DelBianco said Wednesday’s ruling was the correct one.
“[House Bill] 20 would unleash a tidal wave of offensive content and hate speech crashing onto users, creators, and advertisers,” DelBianco said in a statement. “Thanks to the decision made today, social media can continue providing high-quality services to Americans while simultaneously keeping them safe from irresponsible users and offensive content.”