After Australia became the first country in the world to legislate that children under the age of 16 should not be allowed access to social media, a couple of Indian states are contemplating similar action. Whilst some argue the effectiveness of such a ban, others argue against the ban itself. For those, this week’s first ever judgement of its kind in the world by Los Angeles court ruling that social media companies engineer the algorithms to drive kids’ addiction, should come as a wake-up call.

“Meta and YouTube have been found liable for deliberately designing addictive products that hooked a young user and led to her being harmed, a jury ruled on Wednesday. Jurors found the tech companies to be both negligent and having failed to provide adequate warnings about the potential dangers of their products.”

The case was filed by a 20yr old woman going by her initials KGM saying that she has been using Youtube and Instagram since she was a child and the addiction to these have harmed her well-being.

“KGM testified that she became addicted to YouTube at age six and Instagram at nine, which she said had deleterious effects on her wellbeing. By age 10, she said, she had become depressed and was engaging in self-harm as a result. Her social media use allegedly caused her to have strained relationships with her family and in school. When she was 13, KGM’s therapist diagnosed her with body dysmorphic disorder and social phobia, which KGM attributes to her use of Instagram and YouTube.

“How do you make a child never put down the phone? That’s called the engineering of addiction. They engineered it, they put these features on the phones,” Mark Lanier, KGM’s lawyer said during closing arguments last week. “These are Trojan horses: they look wonderful and great … but you invite them in and they take over.”

KGM’s lawyers say her experience is emblematic of what tens of thousands of young people have faced on social media and in their offline lives.

“Today’s verdict is a historic moment – for [KGM] and for the thousands of children and families who have been waiting for this day,” KGM’s lawyers said in a written statement on Wednesday. “A jury of [KGM’s] peers heard the evidence, heard what Meta and YouTube knew and when they knew it, and held them accountable for their conduct. Today’s verdict belongs to [KGM].”

The plaintiffs’ arguments mirrored those brought against big tobacco in the 1990s, which focused on cigarettes’ addictive qualities and companies’ public denials despite knowledge of their products’ harms. They alleged some of the features that social media companies built into their platforms, such as an infinitely scrollable feed and video autoplay, are designed to keep people on the apps and have made the products addictive.”

Meta Platforms, Inc. (Facebook) and Alphabet Inc. (Google) are constituent holdings within the Marcellus Global Compounders Portfolio, a strategy offered by the IFSC branch of Marcellus Investment Managers Private Limited and regulated by the IFSCA. Accordingly, Marcellus, its employees, their immediate relatives, and clients may maintain interests or positions in these securities. Any reference to these companies is intended strictly for informational and educational purposes within the context of this discussion and should not be construed as investment advice.

If you want to read our other published material, please visit https://marcellus.in/blog/

Note: The above material is neither investment research, nor financial advice. Marcellus does not seek payment for or business from this publication in any shape or form. The information provided is intended for educational purposes only. Marcellus Investment Managers is regulated by the Securities and Exchange Board of India (SEBI) and is also an FME (Non-Retail) with the International Financial Services Centres Authority (IFSCA) as a provider of Portfolio Management Services. Additionally, Marcellus is also registered with US Securities and Exchange Commission (“US SEC”) as an Investment Advisor.



2026 © | All rights reserved.

Privacy Policy | Terms and Conditions