The US Court of Appeals for the District of Columbia sided with five US major technology companies accused of profiting from child labor in cobalt mining operations in the Democratic Republic of the Congo.
The plaintiffs complained that the US companies were complicit in the exploitation of child labor by purchasing cobalt, a key component of lithium-ion batteries used extensively in electronics.
According to S&P Global Ratings, the DRC accounts for more than 75% of global cobalt production and the majority of its reserves.
"The plaintiffs claim that a variety of factors forced the children into these jobs. The children lacked the funds to afford school, so they began mining at a young age to avoid starvation and to support their families. Once they started, the miners felt pressured into continuing the work," the lawsuit read.
The lawsuit accused the tech giants of turning a blind eye to the plight of children forced to work in hazardous conditions in the cobalt mines of the DRC.
However, the US court ruled that purchasing cobalt did not constitute "participation in a venture" under the Trafficking Victims Protection Reauthorization Act, a federal law that protects children and other victims of human trafficking and forced labor.
The decision drew criticism from Terry Collingsworth, the lawyer representing the plaintiffs, who suggested that the ruling incentivizes opacity in supply chains and undermines efforts to hold corporations accountable for human rights violations.
He disclosed that plaintiffs would further appeal and consider new lawsuits if the companies' conduct meets the court's criteria.