How Meta and YouTube’s lawsuit losses could reset social media

Meta and YouTube's recent legal woes have opened the floor for a slew of parallel claims, a rare loss for Big Tech that leaves the future of these platforms in question.

Last month, a Los Angeles jury found Meta and YouTube negligent for failing to warn young users about the mental health damage from their platforms. The companies were instructed to pay $6 million in total damages, and have indicated they will appeal.

The plaintiff, a 20-year-old woman who claimed social media use played a "substantial factor” in conditions like depression and anxiety, doesn’t have an unfamiliar narrative.

“This verdict could mark the start of a difficult new chapter for social platforms, one where the rules they write for themselves no longer cut it,” said our analyst Minda Smiley.

What happens next

Experts say the case is a bellwether win, which could quickly draw similar suits and create uncertainty around the platforms' future.

  • US parents see social media use as the biggest detriment to their children’s health (75%), according to an August 2025 KFF and Washington Post survey.
  • 94.1% of users ages 12-17 are on YouTube, and they spend an average of 1 hour and 18 minutes (1:18) a day on TikTok, according to a December 2025 EMARKETER forecast.

The plaintiff cited infinite scroll, beauty features, and personalized, algorithmic recommendations as particularly damaging features. Despite the ruling, the challenges lawmakers face in making social media safer won’t disappear, said Smiley.

“[Lawmakers] have run into plenty of roadblocks along the way, one of which is Big Tech lobbying,” she said. “Still, momentum continues building, and this verdict stands to further embolden their agendas.”

The key questions are what litigation will follow, what steps Meta and YouTube take, and whether platforms can still function as advertising channels if their bottomless feed of content is threatened.

Big tobacco trials trail

The shift from safe use as a perceived individual or parental responsibility to a tech giant’s responsibility has drawn comparisons between this case and Big Tobacco lawsuits.

  • The 1998 Tobacco Master Settlement Agreement (MSA) ruled the industry unlawfully targeted minors and funded anti-smoking nonprofit The Truth Initiative.

Additionally, research on social media use has shown some overlaps among that of addictive substances. For example, a one-week detox reduced anxiety by 16.1%, depression by 24.8%, and insomnia by 14.5% among 18-24 year old US adults, according to a November 2025 JAMA Network report.

While the lawsuit centered on social media’s impact on children, it opens up broader conversation, said our analyst Ethan Cramer-Flood.

“So far this storyline has focused on kids because that’s probably the path of least resistance. But you could very easily transition this into, ‘Their products hurt everyone,’’’ he said.

By next year, advertisers will spend over $100 billion on Meta in the US, according to our forecasts, which is a quarter of all digital ad spending.

"If these social networks have to abandon the fundamental design of their apps to get rid of addictive elements, they're facing bankruptcy unless they voluntarily choose to change their own product," said Cramer-Flood on a “Behind the Numbers” episode.

While platforms like Meta and YouTube have claimed to be taking measures by introducing options like Teen Accounts that tout heightened safety, lawmakers and parents aren’t buying that they work. Meta launched supervision tools last month to alert parents when children and teens search for specific terms related to suicide.

Users set boundaries

Users of all ages are recognizing the harmful effects of social media and are taking steps to control it

A concrete example is the rise in popularity of The Brick, a device that promises to help users control their screen time by blocking apps and retails for $59. The product has been featured in several testimonials from creators and users on TikTok, many of whom claim the product has improved their wellbeing.

https://www.tiktok.com/@haleyreidtay/video/7548919000726621453?_r=1&_t=ZP-95LTx6qFd0x

“Social media companies are already contending with broader challenges related to usage of their platforms,” said Smiley. “Time spent with social networks among US users is plateauing after years of reliable growth, meaning they have to work harder to keep users around."

These cases could limit AI innovation on social platforms, another element in the conversation around teens and mental health. Some 44% of Gen Z turns to AI chatbots for emotional support, according to a December 2025 Pollfish survey.

The case marks momentum for changing social media companies’ business practices, which could increase with more plaintiff cases.

“If they lose on the exact same merit...that they produced a faulty product that is harmful…then the liability is going to stretch into the tens of billions pretty quickly,” said Cramer-Flood.

This was originally featured in the EMARKETER Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

You've read 0 of 2 free articles this month.

Get more articles - create your free account today!