United States: Meta Platforms continues to expand its business despite mounting legal challenges, criticism over child safety and persistent concerns about user privacy. The company’s social media platforms remain widely used, while its advertising revenue and new artificial intelligence products are supporting its growth, according to a BBC report.
The company, led by Mark Zuckerberg, has faced lawsuits alleging that its platforms contribute to social media addiction and harm young users. However, rising app usage, strong financial results and growing interest in its AI assistant suggest that public criticism has not significantly weakened its commercial performance.
Why Is Meta Facing Growing Legal Pressure?
Meta has been involved in several legal disputes concerning the safety of its platforms and their effects on young people. In March 2026, a California jury awarded $6 million to a woman who alleged that Instagram and YouTube contributed to mental health harm. Around the same time, a New Mexico jury found Meta had failed to warn the public about child safety risks and imposed penalties totalling $942 million, according to the report.
Meta has disputed the verdicts and said it is appealing them. The company has also faced additional lawsuits and scrutiny over its handling of children’s safety and the design of its social media products.
In another case, Meta reportedly agreed to pay $9 million to settle a lawsuit brought by a Kentucky school district. The company also reached an $18 billion settlement involving 48 US states, the District of Columbia and three US territories, while denying wrongdoing.
How Is Meta’s Business Continuing to Grow?
Despite the legal pressure, Meta reported a 3% year-on-year increase in the number of people using some of its applications, including Instagram and WhatsApp. Its second-quarter revenue for 2026 rose 28% compared with the same period in 2025.
The company’s advertising business remains a major source of income. Meta reported second-quarter revenue of $60.8 billion and profit of $15.9 billion, providing financial resources for its investments in artificial intelligence and other technologies.
The company’s stock also rose following the announcement of the multistate settlement, reflecting investor attention to the financial implications of the agreement.
What Role Does Meta’s New AI Assistant Play?
Meta launched its AI personal assistant, Muse, in September 2026. The application is designed to perform multi-stage tasks on behalf of users, including handling certain calls, organising purchases and managing information.
According to the report, Muse recorded more than five million downloads and over three million weekly active users within its first month. The company is also developing AI-powered smart glasses intended to connect users with its assistant through hands-free interactions.
Meta’s expansion into AI is part of a broader strategy to build services beyond traditional social networking and strengthen its position in emerging technology markets.
Why Are Privacy Concerns a Challenge for Meta’s AI Plans?
Muse’s capabilities may require users to provide access to sensitive information, including emails, purchase histories and financial details. This has raised questions about whether consumers will trust Meta with more personal data, given the company’s previous privacy controversies, including the Cambridge Analytica scandal.
Zuckerberg said the company had incorporated privacy and security measures into its AI systems. He also announced plans for a protected virtual computing environment designed to store user information securely, with additional safeguards expected later in the year.
Meta has rejected reports that Muse accesses emails without user consent, saying the assistant does not believe it accesses such information unless users have authorised it.
Can Meta Maintain Growth Despite Its Reputation Problems?
Analysts cited in the report said Meta’s commercial strength is supported by the continued popularity of its platforms and the practical benefits offered by its services. Users may continue using products they find useful even when they have concerns about the company behind them.
However, privacy advocates remain sceptical about whether Meta can earn sufficient public trust to persuade users to share more sensitive information with its AI products.
Meta is also making substantial investments in AI infrastructure, with its latest financial statement showing $83.7 billion in long-term debt. Its future growth will depend partly on whether its new technologies attract sustained demand while addressing concerns over privacy, security and child safety.