Meta's Money Machine: Why Scandals Can't Stop Zuckerberg's £1.6 Trillion Empire

Mark Zuckerberg recently opened Meta's annual product event, Meta Connect, with a somewhat reflective tone, stating that "building is an act of love" ^[1]. During his address to analysts and developers, he unveiled new AI products, including the chatbot Muse, smart glasses, and a Tamagotchi-like AI gadget. Notably absent from his nearly hour-long presentation were mentions of Instagram and Facebook, the platforms that helped build Meta into a £1.6 trillion company.

This comes after a year of significant legal challenges for Meta, with accusations of designing addictive products for young users. Internal emails, company documents, and whistleblower testimonies have been used by lawyers and prosecutors across the US to support their cases ^[1]. Zuckerberg's public image is also suffering; a Pew Research Center poll last year found that two-thirds of Americans view him unfavourably.

His reputation may be further damaged by the new film The Social Reckoning, which features Jeremy Strong as Zuckerberg. The film, released this week, is based on whistleblower claims that Meta executives knew their products harmed young people, and a review in The Hollywood Reporter described Strong's portrayal as a "full-on villain" ^[1]. Some observers are drawing parallels to the "Big Tobacco" lawsuits, suggesting a growing consensus against Meta and the social media industry.

However, in the real world, Meta's products are thriving despite the negative publicity. App usage continues to climb, and its new AI assistant is already attracting users ^[1]. The company's number of app users, including Instagram and WhatsApp, has increased by 3% year-on-year, and its second-quarter revenue this year was up 28% compared to the same period in 2025.

Recent legal battles include a £4.5 million jury award in March to a 20-year-old Californian woman who claimed mental health harm from Instagram and Google's YouTube ^[1]. New Mexico also became the first state to win a lawsuit against Meta over child safety, with a jury fining the company £750 million after finding it failed to warn about platform dangers to children. The judge called Meta a "public nuisance". Meta has stated its disagreement with these verdicts and is appealing both cases.

In May, Meta and other social media companies settled a case with a Kentucky school district, with Meta reportedly paying £7.2 million to avoid a trial that alleged their product design caused a youth mental health crisis ^[1]. This summer, Meta reached a high-profile £14.4 billion settlement with 48 US states, the District of Columbia, and three territories. As part of the deal, Meta agreed to two-hour daily time limits for young users, night-time blocks, and muted notifications during school hours. Meta denied wrongdoing in the settlement, maintaining it had invested heavily in making its platforms safer for young users.

This settlement was widely seen as a victory for Meta, as it prevented key executives, including Zuckerberg, from testifying and stopped the release of further internal documents, all while allowing the company to avoid admitting fault ^[1]. Meta's stock price jumped 4% after the announcement and is up over 25% in the last month. The company faces additional lawsuits, including one in Los Angeles later this month concerning alleged social media addiction in young users.

Globally, countries are moving to ban social media for children, with Australia leading the way last December ^[1]. Despite widespread public concern—an Ipsos survey found 85% of Americans believe social media can be addictive for children—Meta's financial success continues, raising questions about whether anything can truly impact the company. Associate Professor Alison Taylor of New York University's Stern School of Business suggested that a loss of public trust could lead to a "downward spiral". The story was first reported by BBC News.