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The shift to design-based liability increases legal risk, potentially raising costs, pressuring margins, and denting investor sentiment in the near term.
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Legal momentum in 2026 targets Meta on platform design rather than content. Three major US cases—New Mexico, California, and a recent $18 billion settlement—signal prosecutors shifting liability focus to how the apps are built. This may raise regulatory scrutiny, potential future costs, and could pressure META's ad-revenue growth if liabilities damp user engagement.
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