Meta Platforms Regulatory Developments

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Australia plans to toughen social media use for teens as survey finds its measures had little impact

“What we want to do is to make sure that the laws are as strong as possible and that they will withstand any legal challenges which are made,” Prime Minister Anthony Albanese said.

A recent survey of 408 adolescents published this week in the British Medical Journal found that 85% of teens aged 12 to 15 are still using social media despite a ban in December.

https://www.investing.com/news/stock-market-news/australia-considers-tougher-enforcement-of-social-media-ban-for-teens-4761975

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EU Commission asks Meta to change addictive features or risk fines

  • The European Commission issued a preliminary finding that Meta breached the Digital Services Act due to the addictive design of Instagram and Facebook.

  • The commission wants Meta to make its platforms less addictive or risk a fine of up to 6% of its global annual turnover.

    “At this stage of the investigation, the Commission considers that Meta needs to implement design changes to both Instagram and Facebook,” the commission said. For instance, by disabling key addictive features such as ‘autoplay’ and ‘infinite scroll’ by default, implementing effective ‘screen time breaks’, and adapting its recommender system to make it less engagement-oriented."

  • Following the preliminary finding, the Commission has given Meta the opportunity to respond to the allegations.

  • The Commission is expected to receive expert recommendations on Monday that could lay the groundwork for a Europe-wide social media ban for teenagers.

  • Bloomberg already reported on this EU Commission ruling some weeks ago.

https://ec.europa.eu/commission/presscorner/detail/en/ip_26_1579

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Judge dismisses lawsuit claiming Meta can access WhatsApp chats

The proposed class-action lawsuit was brought by a group of international users.

https://www.bloomberg.com/news/articles/2026-07-24/meta-wins-dismissal-of-suit-over-whatsapp-privacy

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New Zealand plan to ban under-16s from social media

  • The Online Safety Bill seeks to force social media platforms like Meta to take reasonable steps to check users are over the age of 16.
  • Companies that fail to meet their obligations will face penalties of up to 10% of their global turnover.
  • New Zealand joins other countries such as Australia, the U.K., Canada, Spain, Indonesia, Vietnam and Brazil in coming up with laws banning social media for teens.

https://www.bloomberg.com/news/articles/2026-08-24/new-zealand-plans-social-media-ban-for-under-16s

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Australia wants to give users option to opt out of algorithms

  • Australia has proposed a legislation that would allow social media users to opt out of platforms’ algorithms.
  • The proposal would allow users to opt out of algorithmically recommended content and instead choose what appears in their feeds.
  • Breaches of Australia’s proposed law could result in penalties of up to $79 million.

https://www.bloomberg.com/news/articles/2026-09-08/australia-sets-up-new-big-tech-fight-with-bid-to-block-targeting

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California enacts law banning addictive social media features for children under 16

California joins other states such as Utah, Arkansas, Louisiana, Ohio, Texas, Florida and New York that have adopted laws regulating children’s access to social media.

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EU Commission plans to propose a rule that will bar under-15s from social media without parental consent

  • The Commission also plans to propose new safety requirements for online services such as video games and AI chatbots.
  • The bill due to be published on Thursday would also require tech companies to make their digital services safe by design.
  • The proposal comes after the EU Commission asked Meta to change addictive features or risk fines.

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EU Commission unveils social media curbs for teens

  • The EU plans to ban social media for children under 13 and limit older children’s access to technology and AI services as reported earlier.

    “No social media under the age of 13. No personal account under the age of 15,” von der Leyen said. The bloc will permit 13- and 14-year-olds to have accounts with parental supervision and limited features, she added.

  • The draft law would require strict age checks across social media, video platforms, app stores, online games, AI companions, and chatbots.

  • Companies that fail to meet the requirements could face fines of as much as 6% of their annual sales.

  • The Kids Act still requires approval from EU governments and lawmakers, a process that could take years.

https://www.bloomberg.com/news/articles/2026-09-16/eu-unveils-social-media-curbs-for-kids-and-ban-on-users-under-13?srnd=phx-technology

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The State of New Mexico is seeking between $35-$40 billion in the Cambridge Analytica privacy lawsuit

  • On September 25, a jury found that Meta had misled Facebook users about the privacy of their data in a case stemming from the Cambridge Analytica scandal.
  • Judge Francis Mathew, who presided over the Santa Fe trial, will this month determine the amount Meta must pay in financial penalties.
  • The jury found Meta violated state’s Unfair Practices Act over 43 million times, which could imply penalty of $219 billion at $5,000 per violation.
  • Meta urged the judge to cap the penalties at $3.45 billion.
  • During the hearing, Judge Mathew appeared skeptical of Meta’s arguments, rejecting comparisons with smaller settlements and noting that companies that choose to go to trial “roll the dice.”

Assessment

Considering that courts normally impose significantly lower penalties than what plaintiffs are seeking, and given that Judge Mathew appears skeptical of some of Meta’s arguments, I think he will likely impose a penalty slightly higher than the $3.45 billion Meta is proposing, perhaps around $5 billion. The good thing is that Meta can appeal the penalty.

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Meta ordered to pay $25 billion in New Mexico Cambridge Analytica lawsuit

  • A judge ordered Meta to pay New Mexico $25 billion after a jury found the company liable for misleading users about privacy and content moderation policies on Facebook.
  • New Mexico was seeking $35-$40 billion.
  • Meta said it will appeal the lawsuit but it will have to pay interest on the penalty.
  • According to GPT, the litigation could extend into 2028-2030 if the dispute reaches the New Mexico Supreme Court.
  • New Mexico and Florida were the only two states that did not join the nationwide settlement.

https://apnews.com/article/facebook-penalty-cambridge-analytica-new-mexico-b329f82c3d3db3758a159405acbd4d0e

Assessment

This is arguably one of the largest penalties ever imposed on Meta, far exceeding my expectation of no more than $5 billion. Although Meta can appeal the ruling, the substantial penalty creates a significant legal and financial overhang for the company. Additionally, the ruling could embolden Florida to pursue a similar or potentially larger penalty, given that its population is approximately 11 times that of New Mexico.

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Some legal experts believe Meta has a strong chance of having the $25 billion New Mexico penalty significantly reduced on appeal

“The most vulnerable basis on appeal is going to be the question about whether a violation is going to count, even in the absence of any proof that a particular person saw one of these misrepresentations or relied on them to their detriment,” said Peter Ormerod, a law professor at Villanova University.

“It felt like there was a lot of duplicative counting in the calculations,” said Eric Goldman, a professor at Santa Clara University School of Law. “How many times can a single person be duped by the same entity?”

https://www.investing.com/news/stock-market-news/meta-has-strong-chance-of-getting-25-billion-new-mexico-penalty-slashed-on-appeal-experts-say-4965230

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Pension fund sues Meta and Zuckerberg over recent capital restructuring

“Zuckerberg has always been fixated with his control over Meta,” the Steamfitters Local 449 Pension fund suit says . “Time and time again, he has squeezed and bent Meta’s capital structure to increase his grip and perpetuate his control. Zuckerberg’s latest gambit is his most aggressive attempt yet, while also using the company as his own piggybank to fund his anticipated tax bill.”

The move appeared designed to take advantage of an October 16 Delaware court ruling involving Cloudflare, which indicated that similar corporate restructurings could qualify for legal protections introduced under Delaware’s 2025 corporate law reforms.

Although the court blocked the Cloudflare recapitalization, it seemed to clear the way for a cleaner version of the transaction.

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Meta loses appeal against French regulators’ interim measures over publishers’ rights

  • The Paris Court of Appeals rejected Meta’s appeal against interim measures imposed by France’s competition authority in July 2026 concerning compensation for publishers’ content.
  • Meta’s previous compensation agreement with French press associations expired in 2024, and publishers have received no payments since 2025 after negotiations failed.
  • The interim measures require Meta to resume negotiations with publishers, disclose information about its platforms’ revenue and use of protected content, and refrain from degrading the display of news content.
  • Google was fined in 2021 €500m by France’s competition authority for failing to negotiate “in good faith” with news publishers.

https://www.investing.com/news/stock-market-news/meta-loses-appeals-against-interim-measures-imposed-by-french-regulators-4984447

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Meta, TikTok and X Lose UK Court Challenge Against Ofcom’s Online Safety Information Demands

  • Meta, TikTok and X lost a legal challenge against UK regulator Ofcom over its demands for detailed content moderation data under the Online Safety Act 2023.
  • Ofcom can impose fines of up to £18 million or 10% of a company’s qualifying worldwide revenue, whichever is greater, for serious violations.
  • Previous enforcement actions have generally resulted in much smaller penalties, including a £1.875 million fine against TikTok in 2024 for providing inaccurate information.

https://www.investing.com/news/stock-market-news/meta-tiktok-x-lose-legal-challenge-against-uk-watchdog-over-online-safety-data-demands-4987036