A bipartisan group of 42 attorneys general is suing Meta, alleging that features on its Facebook and Instagram social media platforms are addictive and are aimed at kids and teens, the group announced Tuesday. The support from so many state attorneys general of different political backgrounds indicates a significant legal challenge to Meta’s business.
Meta is now facing multiple lawsuits on this issue in several districts. Attorneys general from 33 states filed a federal suit against Meta in the Northern District of California, while nine additional attorneys general are filing in their own states, according to a press release from New York Attorney General Letitia James’ office. Besides New York, the states that filed the federal suit include California, Colorado, Louisiana, Nebraska, South Carolina, Washington and Wisconsin.
The lawsuits are another demonstration of the bipartisan priority state law enforcers have placed on protecting kids and teens from online harm.
It’s also not the first time a broad coalition of state attorneys general have teamed up to go after Meta. In 2020, 48 states and territories sued the company on antitrust grounds, alongside a separate complaint from the Federal Trade Commission.
Meta designed its Facebook and Instagram products to keep young users on them for longer and repeatedly coming back, the attorneys general allege. According to the federal complaint, Meta did this via the design of its algorithms, copious alerts, notifications and so-called infinite scroll through platform feeds. The company also includes features that the AGs allege negatively impact teens’ mental health through social comparison or promoting body dysmorphia, such as “likes” or photo filters.
The federal suit also accuses Meta of violating the Children’s Online Privacy Protection Act, or COPPA, by collecting personal data on users under 13 without parental consent.
The states are seeking an end to what they see as Meta’s harmful practices, as well as penalties and restitution.
Meta was well aware of the negative effects its design could have on its young users, the attorneys general allege.
“While Meta has publicly denied and downplayed these harmful effects, it cannot credibly plead ignorance,” James’ office wrote in a press release. “Meta’s own internal research documents show its awareness that its products harm young users. Indeed, internal studies that Meta commissioned — and kept private until they were leaked by a whistleblower and publicly reported — reveal that Meta has known for years about these serious harms associated with young users’ time spent on its platforms.”
Former Facebook employee Frances Haugen caused an uproar among lawmakers and parents in 2021 after leaking internal documents from the company that revealed internal research on its products. One set of documents about Instagram’s impact on teens found that “thirty-two percent of teen girls said that when they felt bad about their bodies, Instagram made them feel worse,” The Wall Street Journal reported before Haugen made her identity known. Following the report, Instagram said it was working on ways to pull users away from dwelling on negative topics.
“It should have been the practice of Meta to alert people that they were dealing with a dangerous, potentially addictive product before they started using it,” District of Columbia Attorney General Brian Schwalb told CNBC in a phone interview. Schwalb is among the attorneys general who filed an individual suit against Meta alleging it violated the district’s consumer protection law.
“We share the attorneys general’s commitment to providing teens with safe, positive experiences online, and have already introduced over 30 tools to support teens and their families,” Meta spokesperson Andy Stone said in a statement. “We’re disappointed that instead of working productively with companies across the industry to create clear, age-appropriate standards for the many apps teens use, the attorneys general have chosen this path.”
Several of the practices the attorneys general focus on for Meta are similar to those exercised by other social media businesses, such as designing algorithms to keep users engaged.
Schwalb said that while he doesn’t think Meta is the only company trying to keep users’ attention with its features, “they do it very, very effectively and to the great detriment of millions of young people and tens of thousands of young people here in the District.”
“All human beings are susceptible to FOMO,” Schwalb said, referring to the fear of missing out. “But particularly 12- to 14-, 15-, 16-year-old kids. They’re the ones who are really worried about missing out. All of that is part of the built-in DNA that Meta uses to keep people hooked.”
The broad coalition of bipartisan attorneys general underscores the wide-ranging interest from law enforcers on both sides of the aisle in consumer protection issues like this one. President Joe Biden has also made it a point to discuss the priority of protecting kids’ safety and mental health online in his State of the Union.
“I think when you find an issue like this, it’s a good opportunity for AGs to link arms across party [lines] to try to make America a safer place,” Schwalb said.
A woman cleans the store window of the Amazon house after activists sprayed paint on its logo during a protest on the opening day of the 55th annual meeting of the World Economic Forum in Davos, Switzerland, on Jan. 20, 2025.
Yves Herman | Reuters
Amazon reported a 19% increase in online ad revenue in the first quarter, beating analysts’ estimates.
Ad sales climbed to $13.92 billion, while analysts on average were expecting $13.74 billion, according to StreetAccount.
The numbers were contained in Amazon’s first-quarter earnings report. The company reported total first-quarter sales of $155.67 billion, compared to Wall Street projections of $155.04 billion.
Although Amazon’s online ad business represents a fraction of overall sales, it has emerged in recent years to become the third-biggest platform in the global digital advertising market, behind only Alphabet and Meta.
Online advertising is a particular area of focus for investors due to economic uncertainty and increasing tensions between the U.S. and China over trade. While President Donald Trump’s China tariffs will likely affect Amazon’s core retail business, the company’s online ad unit could also feel some pain.
So far, tech companies with online ad businesses have reported solid first-quarter earnings, but warned of potentially tougher times later in the year.
Meta reported stronger-than-expected first-quarter earnings this week, but said ad sales in the Asia-Pacific region came in at $8.22 billion for the quarter, trailing analysts’ estimates of $8.42 billion.
The company’s finance chief Susan Li said during an earnings call that “Asia-based e-commerce exporters” have slowed their online ad spending likely due to the de minimis trade loophole ending this Friday.
When Alphabet reported first-quarter earnings last Thursday, it revealed that ad sales grew 8.5% year over year to $66.89 billion and YouTube ad revenue increased 10% to $8.93 billion. But Alphabet executives told analysts that it expects headwinds to its Asia-Pacific-focused advertising business.
Snap on Tuesday said it had “experienced headwinds to start the current quarter,” which resulted in the company saying it would not provide guidance.
Last week, Microsoft reported its latest quarterly earnings and said search and news advertising sales, minus payments to its affiliates, grew 15% year over year to $449 million.
Reddit also reported first-quarter earnings on Thursday that beat on sales and guidance. The company’s first-quarter sales soared 61% year over year to $392 million.
Although Reddit’s second-quarter guidance topped analysts’ projections, CEO Steve Huffman said there is some economic shakiness.
“Ever-shifting macro environments like these create both challenges and opportunities,” Huffman wrote in a letter to shareholders. “We’ve grown through challenging times before — people need connection and information just as much in uncertain times.”
Apple CEO Tim Cook, after nearly a month of anticipation from investors, on Thursday finally revealed how Apple was navigating the Trump administration’s tariffs.
The company only saw a “limited impact” on tariffs between January and the end of March, Cook told investors on an earnings call for the company’s second quarter results.
For the current quarter which ends in June, Apple is predicting about $900 million in additional costs for those tariffs — assuming nothing changes, Cook said. That surprised analysts who said on the call that they expected the costs to be higher.
The vast majority of Apple’s products are “currently not subject” to Trump’s reciprocal tariffs, Cook said. But beyond June, he didn’t say much.
“I don’t want to predict the future because I’m not sure what will happen with tariffs,” said Cook, adding that “it’s very difficult to predict beyond beyond June.”
Apple doesn’t usually give a lot of details or guidance beyond the current quarter, but investors didn’t like Thursday’s lack of clarity. Apple shares fell as much as 4% in extended trading on Thursday despite the company reporting results that beat Wall Street expectations for revenue and showed strong sales growth for iPads and Mac computers.
“As we look ahead, we remain confident,” Cook said.
Apple’s uncertainty highlights how even a company with a reputation for world-class operations can get whacked by the unpredictability of the Trump administration’s shifting tariff rates and dates.
Cook, who built his reputation in Silicon Valley as Apple’s operations guru, discussed how the company has dealt with the tariffs to minimize their impact so far on Thursday. He praised his old division on a call with analysts.
“‘l’ll just say that the operational team has done an incredible job around optimizing the the supply chain and the inventory,” he said.
Apple is currently sourcing American-bound products from India and Vietnam, Cook said. Those countries currently have 10% tariffs on them, and the company is sourcing Apple computers for rest of the world from China, which the Trump administration has hit with a 145% tariff rate.
Cook also said that Apple had built up inventory ahead of the tariffs, which would be reported as manufacturing purchase obligations in the company’s filings with the Securities and Exchange Commission. Cook said there was no “obvious evidence” that consumers were buying more Apple products ahead of tariffs.
“We do expect the majority of iPhones sold in the U.S. will have India as their country of origin,” Cook said. “Vietnam will be the country of origin for almost all iPad, Mac, Apple Watch and AirPods products sold in the U.S.”
Apple will still pay higher 145% tariffs on some Chinese imports for AppleCare, its extended warranty program, and accessories, Cook said.
One issue for forecasting tariffs going forward is that both Vietnam and India are in line to get hit with hefty tariffs on imported goods as soon as July.
Trump previously targeted both countries under his “reciprocal tariffs” on April 2, but a week later, he paused the tariffs for 90 days. Apple expanded its supply chain to those countries in recent years as a hedge for its business, but the Vietnam and India strategy won’t work if Trump’s tariffs ultimately take effect.
Cook also mentioned the possibility that technology products such as semiconductors might receive additional tariffs under a process called a Section 232 Investigation.
Apple is not the only big tech company to get rattled by the Trump administration’s tariffs.
Amazon finance chief Brian Olsavsky said Thursday that Amazon would offer a wider range of guidance because of tariff uncertainty, and he also alluded to the possibility of weakening consumer demand. Microsoft raised Xbox prices on Thursday, despite tariffs coming up just once on the company’s Wednesday earnings call.
Apple didn’t offer guidance for its profitable Services division on Thursday, but offered the same kind of top-line forecast that it has in previous quarters. Apple expects overall revenue to grow “low to mid-single digits” on an annual basis during the current quarter. Apple reported $85.78 billion in sales during the June quarter last year.
And at least during that quarter, Apple investors will know what to expect.
Nvidia’s CEO Jensen Huang delivers his keystone speech ahead of Computex 2024 in Taipei on June 2, 2024.
Sam Yeh | AFP | Getty Images
Nvidia CEO Jensen Huang has made tens of billions of dollars in recent years from his stake in the chipmaker, but he’s getting his first salary increase in a decade.
Huang’s base salary rose to $1.5 million, a 49% increase from 2024, according to a proxy filing with the SEC on Thursday. His variable cash also went up by $1 million, or 50%, from the 2024 fiscal year. Stock awards grew to $38.8 million, bringing total pay to $49.9 million.
The compensation committee “believed this was appropriate in consideration of internal pay equity with the base salaries” of other top executives, the filing said, and “it represented Mr. Huang’s first base salary increase in 10 years.”
Nvidia is in the midst of a boom that’s turned it into one of the most valuable companies in the world, thanks to its graphics processing units (GPUs) that power the most powerful artificial intelligence models and workloads. Revenue in the 2025 fiscal year jumped 114% to $130.5 billion, the company reported in February.
The company’s stock price increased more than ninefold between the end of 2022 and the end of last year. Huang’s roughly 3.5% stake is currently worth about $94 billion.
Huang’s 2025 pay also included $3.5 million in residential security and consultation fees and driver services, the company said in the filing. In the previous year, residential security and consultation fees for Huang totaled $2.2 million.
Google in a recent filing said it paid $8.27 million for CEO Sundar Pichai’s personal security and travel, representing a 22% increase from the year prior.