Is this social media's tobacco moment?

The podcast covers a landmark legal ruling in Los Angeles where Meta and Google were found liable for harming a 20-year-old woman's mental health through addictive social media design features like infinite scroll. The case represents one of nine test cases that could set precedent for thousands of similar claims from individuals, school districts, and state attorneys general. The ruling bypassed traditional Section 230 protections by focusing on product liability rather than content liability, arguing that design features themselves—not user-generated content—caused harm. Meta shares dropped 7% and Google shares fell 5% following the verdict. The companies, worth a combined $4.66 trillion and representing 8% of the S&P 500, face potential floodgates of similar lawsuits. The discussion explores whether this fits into broader child safety concerns globally, with countries like Australia restricting social media for minors. FT correspondent Rob Armstrong argues the sell-off is overdone, citing his experience that tech lawsuits rarely matter long-term due to rapid technological change and the free, valuable nature of these services. The hosts note that Mark Zuckerberg's testimony was reportedly unsympathetic to the jury. Looking ahead, the case will likely be appealed, potentially reaching a conservative Supreme Court during a Trump administration. There are also concerns about future AI liability, as Section 230 may not protect companies from content generated by their own chatbots rather than users.