Meta & Alphabet lose case in landmark trial

Meta & Alphabet lose case in landmark trial.

What happened this week?

This week, we saw growing pressure on “big tech” media companies, particularly when it comes to protecting younger and more vulnerable audiences.

That pressure intensified this week following a series of US court rulings against Meta and Alphabet. In both cases, the companies were found responsible for harm linked to their platforms.

What stands out is that the focus was not on the content users post, but on how the platforms themselves are designed. The algorithms that promote “autoplay” and “infinite scroll” were highlighted as systems that can encourage addictive behaviour.

The jury found Google liable for €1.8 million and Meta for €4.2 million in damages, amounts that remain modest given the scale and market value of both companies.

Apart from the financial penalty, the significance of these rulings is being framed as a potential turning point for the industry that has been under mounting regulatory pressure within this decade.

Why does this matter?

By shifting the focus to product design, the courts have opened a new path for legal action. This makes it easier to hold platforms accountable and increases the likelihood of further cases.

It also adds momentum to regulatory efforts around the world, particularly in areas like child safety. We have seen this already take shape in Australia as the country became the first to implement a restriction of social media access for children and teens. This is a growing regulatory trend worldwide, with similar bills currently in progress in several European countries.

More broadly, it signals a shift in perception. Social media is increasingly being viewed not just as a neutral platform, but as a product that can have real-world consequences, especially for younger users.

What does this mean for brands & advertisers?

For brands and advertisers, this points to a long-term changing landscape rather than immediate short-term disruption. Social platforms may come under pressure to adjust how their products work, particularly in relation to addiction and younger audiences. That could mean potential changes to how algorithms serve content or the need to limit certain engagement features.

In the last number of years we have already seen even tighter controls around targeting across tech platforms. Meta has disabled a significant portion of its targeting capabilities in response to increasing regulatory pressure. This has included the removal of detailed targeting options related to sensitive categories such as health, finance, politics, and personal attributes.

All of these points have an impact on how advertisers’ campaigns perform and how audiences are reached.

At the same time, expectations around brand responsibility are evolving. There is a growing focus on content and the overall environment in which brands appear.

Within Core, this is addressed through a focus on premium placements only alongside strict moderation controls to ensure content appears exclusively in higher-quality environments.

Social will remain a core part of the media mix, but this moment suggests the rules are beginning to shift. As they do, brands will need to stay flexible and more considered in how they show up across platforms.