Aug 28, 2026
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Social media companies are facing global legal challenges and legislative efforts aimed at curbing potential psychological harm to young users caused by engagement-driven business models.

ManyPress

ManyPress

ManyPress Editorial

3 min readSource:Deutsche Welle Business
Social Media Platforms Face Increasing Regulatory and Legal Scrutiny

Key facts

  • Meta reported $196.2 billion in advertising revenue last year.
  • A 2021 internal leak from Meta identified links between Instagram use and mental health concerns in teenage girls.
  • Sensor Tower data indicates U.S. teens spent approximately 90 minutes daily on TikTok in 2025.
  • Social media bans for users younger than 16 have been implemented in countries including Australia, Indonesia, Brazil, and Malaysia.
  • Research by Cornelia Sindermann found that two-thirds of adolescents would be willing to pay for a public-service version of social media with stronger guardrails.

Social media platforms like Meta, YouTube, and TikTok are under intense scrutiny for business models that prioritize engagement through features like nonstop scrolling and notifications. This strategy has led to a wave of lawsuits and regulatory efforts, as governments and legal authorities attempt to address concerns regarding addiction, anxiety, and depression among younger users.

By the numbers

$196.2 billion
Meta's advertising revenue last year
$18 billion
Meta settlement amount for 47 states and territories
90 minutes
Average daily time U.S. teens spent on TikTok in 2025

Legal Challenges and Settlements

In a recent legal development, 29 U.S. states sued Meta, alleging the company designed its platforms to addict young users. Meta subsequently reached a settlement to pay up to $18 billion to 47 states, the District of Columbia, and U.S. territories, which includes a $1 billion agreement with Texas. As part of the settlement, the company agreed to implement usage limits and restrict teen access to its apps during nighttime hours.

Legislative Efforts and Safety Standards

In the United States, bipartisan support is growing for the Kids Online Safety Act (KOSA), which aims to mandate stronger default safety settings for minors and provide parents with more account control tools. Proponents, including the Center for Humane Technology, argue that social media products should be subject to the same consumer-protection and product-liability standards applied to other goods like medications and children's toys.

Research and Alternative Models

Studies have linked social media use among teenagers to increased body dissatisfaction and mental health concerns. While some platforms are testing subscription-based models to move away from ad-driven revenue, researchers like Cornelia Sindermann express doubt that these alternatives will replace current popular platforms. Meanwhile, experts are raising concerns that the same engagement-driven practices are being integrated into emerging artificial intelligence technologies.

Timeline

  1. 2021
    Leaked documents from Meta indicated links between Instagram use and mental health concerns among teenage girls.
  2. 2023
    Amnesty International tests showed TikTok's algorithm could recommend content related to depression and self-harm.
  3. Wednesday
    Meta announced a settlement to pay up to $18 billion to various U.S. states and territories.

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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Deutsche Welle Business.

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