Understand
Why Meta's business is booming despite Mark Zuckerberg's image problems and legal battles
Overview
Despite facing mounting legal actions, large fines over child safety concerns, and widespread public criticism regarding product addiction and privacy, Meta's business and app usage continue to grow strongly. The company's recent second-quarter revenue rose significantly, and its new AI assistant, Muse, has seen rapid adoption, suggesting consumers often prioritize convenience over privacy concerns.
Key points
- Mark Zuckerberg and Meta have faced severe criticism, low public favourability ratings, and numerous legal challenges over accusations that their platforms are addictive to young users.
- Meta recently agreed to a major $18bn settlement with 48 US states, the District of Columbia, and three territories, which included new restrictions for young users.
- Despite ongoing controversies and a series of bad headlines, Meta reported a 28% increase in second-quarter revenue compared to the same period in 2025, with app usage rising by 3% year-on-year.
- Meta launched its new AI personal assistant app, Muse, which quickly achieved over five million downloads and three million weekly active users in its first month.
- Critics remain sceptical about Meta's handling of private data, especially given past scandals and new AI privacy concerns, but analysts suggest consumers may continue trading privacy for convenience.