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Meta flags 2026 US youth addictive-design trials and EU Commission scrutiny of ‘less personalised’ pay-or-consent ads, risking material losses and near-term European revenue impact

Published on: 11 November 2025

Published by an LexisNexis Ireland - Commercial expert
Legal News
Article summary

Meta Platforms warned of ‘increasing headwinds’

On 29 October 2025, Meta Platforms cautioned of ‘increasing headwinds’ tied to legal and regulatory pressures, warning it could suffer ‘a material loss’ amid a wave of US cases in 2026 alleging Instagram and Facebook were engineered to be addictive for young users. Announcing third-quarter results, Chief Financial Officer Susan Li told investors Meta is continuing to monitor active legal and regulatory matters, with mounting challenges in the EU and the US that could meaningfully affect its business and financial performance. Li noted that several youth-related trials set for 2026 may ultimately lead to a material loss. Meta also flagged a possible revenue impact before the end of 2025 stemming from action by the Commission regarding the ‘less personalised’ targeted-ads product launched in the EU last year, a ‘pay or consent’ model that has likewise drawn scrutiny from the Commission and the Irish Data Protection Commission. Li added that Meta remains engaged in constructive dialogue with the Commission over its Less Personalised Ads offering...

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