U.S. tech titan Meta Platforms (META) will have to face the wrath of Italian mothers in court because of concerns over child safety. Its shares dropped on the news.
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As reported by Reuters, a group of Italian families has filed a lawsuit against Meta-owned Facebook and Instagram, as well as TikTok, for failing to enforce age restrictions and using addictive features that harm children’s mental health.
Age Verification
The case asks a Milan court to require the platforms to adopt stronger age-verification systems for users under 14, in line with Italian law.
It also seeks to make Meta-owned Facebook and Instagram and TikTok remove potentially manipulative algorithms and provide transparent information on the possible harms of overuse.
The action, filed by law firm Ambrosio & Commodo together with the Italian Parents’ Movement (MOIGE), is scheduled to be heard by the Milan court’s business chamber from next February.
It estimates that more than three million of the 90 million Facebook, Instagram, and TikTok accounts are used by children under 14.
A Meta spokesperson said the company was committed to keeping young people safe online and that “teen safety should be an industry-wide priority”.
The court case could be a reputational and financial blow for META and is why legal and regulatory risks are key for the company and its investors – see above.
TikTok did not comment.
Growing Pressure
Facebook, Instagram and TikTok also face dozens of lawsuits in the U.S. accusing them of enticing and addicting millions of children to their platforms.
Meta has faced new claims from two former employees who claim the company buried research on the safety of children in its virtual reality products. The whistleblowers told a Senate subcommittee that internal studies showed kids faced risks from adult contact and graphic content inside the company’s metaverse platforms.
Other pressure has come from the U.K. where Meta, along with other social media firms, has been warned it could face large fines or even be banned if they do not follow new regulations aimed at protecting children online.
Is META a Good Stock to Buy Now?
On TipRanks, Meta has a Strong Buy consensus based on 40 Buy and 6 Hold ratings. Its highest price target is $1,086. META stock’s consensus price target is $876.93 implying a 23.10% upside.
