Today I want to walk you through something that, at first glance, looks like just another headline, but in reality could completely reshape the future of social media.
Because a few days ago, a 20-year-old woman won a case against Meta ($META) and YouTube and was awarded $6 million in damages.
Her claim was that these platforms made her addicted.
And not just that.
The court ruled that the companies acted with “malice, oppression, or fraud.”
And if you think this is just an isolated case, think again.
Because at the same time, in another U.S. state, Meta ($META) was hit with a $375 million penalty, while the stock has fallen more than 5% over the past week.
FROM “SCROLLING” TO ADDICTION
Let me put this in order.
In the first case, the young woman started using Instagram at age 9 and YouTube at age 6. Over the years, she reached a point where she was spending up to 16 hours a day on these platforms. Sixteen hours.
That is basically her entire day.
Little by little, she became distant from her family, started dealing with anxiety and depression, was influenced by filters, and began to change the way she saw herself, until she was diagnosed with body dysmorphia.
And if I think about it more deeply, this is not just a personal tragedy.
This is something that has happened, to a greater or lesser extent, to millions of people.
And this is where things get even more interesting. Her lawyers did not simply argue that this “just happened.” They argued that this was the result of deliberate design.
That features like infinite scroll, recommendations, and all of this endless content are built for one reason: to keep us inside.
For as long as possible. To make it hard to stop. To make us say, “just one more scroll,” and then another hour disappears.
And right when I might be tempted to say, “okay, maybe it is just one case,” the second lawsuit makes everything much heavier.
In New Mexico, Meta ($META) was ordered to pay $375 million because, according to the court, it misled the public about how safe its platforms really were.
And not only that, there was evidence that networks exploiting minors were operating within its platforms.
At that point, I am no longer talking about “bad use.” I am talking about something far more serious.
And the most shocking part? There were internal documents, warnings from employees, and experts saying there was a problem.
And despite that, nothing was done.
So the issue is not that they did not know. The issue is that they knew, and still kept going.
BIG TECH VS SOCIETY
And this is where I start to see the bigger picture.
Because it is not only these two cases. There are hundreds of similar lawsuits coming, while parents, organizations, and governments are all putting pressure on these platforms.
Some countries are already discussing bans for children under 16, while others are debating restrictions on usage. In general, there is a massive negative shift in attitude toward social media.
And what is really happening is this: society is starting to turn against Big Tech.
And that is not a small thing. Because when society changes, sooner or later the laws change too. And when laws change, business models change with them.
INVESTING
So what does all of this mean for me as an investor?
First, the obvious point. When a company gets caught up in this many lawsuits, fines, and regulatory battles, it costs money.
And it does not just cost money. It costs growth and strategic flexibility.
And most importantly, it costs trust.
