Meta reports revenue growth and rising app usage even as legal judgments and regulatory actions mount against the company over child safety concerns.
The social media giant's second quarter revenue jumped 28 percent compared with the same period last year, while user engagement on Instagram and WhatsApp grew 3 percent year over year, the BBC reports. This growth persists despite a cascade of legal setbacks and settlements totaling over $27 billion across multiple jurisdictions.
Meta faced four major judgments and settlements this year. In March, a California jury awarded $6 million to a 20-year-old woman claiming mental health harms from Instagram use. New Mexico became the first state to win a child safety lawsuit against Meta; a jury found the company a "public nuisance" and fined it $942 million. In May, Meta paid $9 million to settle claims from a Kentucky school district over product design and youth mental health. And this summer, Meta agreed to an $18 billion settlement with 48 US states plus the District of Columbia and three territories to resolve addiction-related claims. Meta denied wrongdoing in all cases and is appealing where possible.
Company CEO Mark Zuckerberg did not mention Facebook or Instagram during his keynote at Meta Connect last month, instead highlighting new AI products including a chatbot called Muse and wearable devices. This pivot comes as Zuckerberg faces a reputation problem: a Pew Research Center poll found two-thirds of Americans view him unfavorably. A new film "The Social Reckoning" by Aaron Sorkin portrays him as dismissive of responsibility for harms to young users.
The settlements include commitments to restrict teen access. Meta agreed to implement two-hour daily time limits for young users, nighttime blocks, and muted notifications during school hours. The company maintains teens represent less than 1 percent of revenue.
Public distrust of social media runs high. A Reuters/Ipsos survey found 85 percent of Americans believe social media can be addictive for children, and 61 percent support greater government oversight. Several countries, including Australia, have moved to ban social media for children entirely.
Alison Taylor, an associate professor at New York University's Stern School of Business, told the BBC that once public trust erodes significantly, "it's kind of a downward spiral." Meta faces an additional lawsuit starting later this month in Los Angeles.
