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.
People stand in front of an Apple store in Beijing, China, on April 9, 2025.
Tingshu Wang | Reuters
Apple iPhone sales in China rose in the second quarter of the year for the first time in two years, Counterpoint Research said, as the tech giant looks to turnaround its business in one of its most critical markets.
Sales of iPhones in China jumped 8% year-on-year in the three months to the end of June, according to Counterpoint Research. It’s the first time Apple has recorded growth in China since the second quarter of 2023.
Apple’s performance was boosted by promotions in May as Chinese e-commerce firms discounted Apple’s iPhone 16 models, its latest devices, Counterpoint said. The tech giant also increased trade-in prices for some iPhone.
“Apple’s adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,” Ethan Qi, associate director at Counterpoint said in a press release. The 618 shopping festival happens in China every June and e-commerce retailers offer heavy discounts.
Apple’s return to growth in China will be welcomed by investors who have seen the company’s stock fall around 15% this year as it faces a number of headwinds.
Since then, Huawei has aggressively launched devices in China and has even begun dipping its toe back into international markets. The Chinese tech giant has found success eating away at some of Apple’s market share in China.
Huawei’s sales rose 12% year-on-year in the second-quarter, according to Counterpoint. The firm was the biggest player in China by market share in the second quarter, followed by Vivo and then Apple in third place.
“Huawei is still riding high on core user loyalty as they replace their old phones for new Huawei releases,” Counterpoint Senior Analyst Ivan Lam said.
Chinese tech giant Baidu has bolstered its core search platform with artificial intelligence in the biggest overhaul of the product in 10 years.
Analysts told CNBC the move was a bid to keep ahead of fast-moving rivals like DeepSeek, rather than traditional search players.
“There has been some small pressure on the search business but the focus on AI and Ernie Bot is a key move ahead,” Dan Ives, global head of tech research at Wedbush Securities, told CNBC by email. Ernie Bot is Baidu’s AI chatbot.
“Baidu is not waiting around to watch the paint dry, full steam ahead on AI,” he added.
Baidu AI overhaul
Baidu is China’s biggest search engine, but — as is also being seen by Google — the search market is being disrupted.
Users are flocking instead to AI services such as ChatGPT or DeepSeek, which shocked the world this year with its advanced model it claimed was created at a fraction of the cost of rivals.
But Kai Wang, Asia equity market strategist at Morningstar, also noted that short video platforms such as Douyin and Kuaishou are also getting into AI search and piling pressure on Baidu.
To counter this, Baidu made some major changes to its core search product:
Users can now enter more than a thousand characters in the search box, versus 28 previously;
Questions can be asked in a more direct and conversational manner, mirroring how people now use chatbots;
Users can ask questions through voice but also prompt the seach engine with pictures and files;
Baidu has integrated its AI chatbot features, which enable users to generate photos, text and videos, into the product.
“This is more aligned with how people use ChatGPT and DeepSeek in terms of how they look for answers,” Wang said.
Outside of China, Google has also been looking to enhance its core search product with AI, highlighting how search has been under pressure from the burgeoning technology.
Baidu on the offense
Baidu was one of China’s first movers when it came to AI, releasing its first models and ChatGPT-style product Ernie Bot to the public in 2023. Since then, it has aggressively launched updated AI models.
However, the Beijing-headquartered company has also faced intense competition from fellow tech giants like Alibaba and Tencent, as well as upstarts such as DeepSeek.
These companies have also been launching new models and infusing AI into their products and Baidu’s stock has fallen behind as a result. Baidu shares have risen around 2.5% this year, versus a 30.5% surge for Alibaba and a 20% rise for Tencent.
“This is a defensive and offensive move … Baidu needs to be aggressive and perception-wise show they are not the little brother to Tencent on the AI front,” Wedbush Securities’ Ives added.
Founded in 2022, ElevenLabs is an AI voice generation startup based in London. It competes with the likes of Speechmatics and Hume AI.
Sopa Images | Lightrocket | Getty Images
LONDON — ElevenLabs, a London-based startup that specializes in generating synthetic voices through artificial intelligence, has revealed plans to be IPO-ready within five years.
The company told CNBC it is targeting major global expansion as it prepares for an initial public offering.
“We expect to build more hubs in Europe, Asia and South America, and just keep scaling,” Mati Staniszewski, ElevenLabs’ CEO and co-founder, told CNBC in an interview at the firm’s London office.
He identified Paris, Singapore, Brazil and Mexico as potential new locations. London is currently ElevenLabs’ biggest office, followed by New York, Warsaw, San Francisco, Japan, India and Bangalore.
Staniszewski said the eventual aim is to get the company ready for an IPO in the next five years.
“From a commercial standpoint, we would like to be ready for an IPO in that time,” he said. “If the market is right, we would like to create a public company … that’s going to be here for the next generation.”
Undecided on location
Founded in 2022 by Staniszewski and Piotr Dąbkowski, ElevenLabs is an AI voice generation startup that competes with the likes of Speechmatics and Hume AI.
The company divides its business into three main camps: consumer-facing voice assistants, integrations with corporates such as Cisco, and tailor-made applications for specific industries like health care.
Staniszewski said the firm hasn’t yet decided where it could list, but that this decision will largely rest on where most of its users are located at the time.
“If the U.K. is able to start accelerating,” ElevenLabs will consider London as a listing destination, Staniszewski said.
The city has faced criticisms from entrepreneurs and venture capitalists that its stock market is unfavorable toward high-growth tech firms.
Meanwhile, British money transfer firm Wiselast month said it plans to move its primary listing location to the U.S.,
Fundraising plans
ElevenLabs was valued at $3.3 billion following a recent $180 million funding round. The company is backed by the likes of Andreessen Horowitz, Sequoia Capital and ICONIQ Growth, as well as corporate names like Salesforce and Deutsche Telekom.
Staniszewski said his startup was open to raising more money from VCs, but it would depend on whether it sees a valid business need, like scaling further in other markets. “The way we try to raise is very much like, if there’s a bet we want to take, to accelerate that bet [we will] take the money,” he said.
