Meta and YouTube Lose Landmark Social Media Trial

Summary

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WSJ What’s News: Meta and YouTube Lose Landmark Social Media Trial

Date: March 25, 2026
Host: Alex Osola (The Wall Street Journal)
Guests: Megan Bobrowski (WSJ Tech Reporter), Laura Nelson (WSJ Enterprise Reporter), Kejal Vias (WSJ Reporter)

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Episode Overview

This episode covers several major news stories, with the main theme focusing on the landmark court decision against Meta and YouTube for social media harms to children. Additional segments highlight the response to a proposed California billionaire tax, dramatic crime reductions in Venezuela, developments in the U.S.-Iran conflict, and the airport security boom benefiting Clear Secure.

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1. Landmark Social Media Trial: Meta and YouTube Found Negligent

(Main Segment: 00:34 – 03:24)

Key Points

• Jury Verdict:

  • In Los Angeles, a jury found Meta (Instagram) and YouTube (Google) negligent for operating products harmful to kids and teens, failing to warn about those dangers.
  • Ordered the companies to pay $6 million in damages.

• Related Case:

  • A day prior, a New Mexico ruling found Meta liable for failing to protect young users; ordered to pay $375 million.
  • Financial penalties are small relative to company revenues but significant for legal precedent.

• Legal Implications:

  • Challenges the broad protections offered by Section 230 of the 1996 Communications Decency Act, which generally shields internet platforms from liability for user-generated content.
  • As Megan Bobrowski notes:

  “What these cases are really about is about setting precedent that these companies are not shielded by Section 230 as much as people might have thought they've been.” (02:18 – Megan Bobrowski)

• Potential Fallout:

  • The verdict could prompt Meta, YouTube, and other platforms to alter their business practices or settle further cases out of court.
  • Thousands of related cases are pending, indicating wide-reaching implications for social media companies.

• Company Responses:

  • Both Meta and Google say they intend to appeal.

Memorable Quote

"Meta has lost two cases in the span of two days, accusing them of social media harms towards children and being responsible for the design of their apps. So this is a landmark case.”
— Megan Bobrowski (02:00)

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2. Billionaire Tax Battle in California

(04:12 – 06:10)

Key Points

• Proposal:

  • California considers a one-time 5% wealth tax on billionaires.

• Billionaire Response:

  • Tech and business leaders, notably Sergey Brin, are funding ballot measures to undercut the tax’s effectiveness without directly negating it.
  • Alternative measures propose increased auditing, banning retroactive taxes, and protecting school funding stipulations.

• Funding:

  • Brin has contributed $45 million; other backers include Michael Moritz, John Doerr, Patrick Collison, and Eric Schmidt.

• Current Status:

  • Both sides are racing to collect signatures. It’s a tight deadline to qualify for the November ballot.

  "It will be down to the wire. We are within weeks of the deadline passing and they're all still out there." (05:43 – Laura Nelson)

Notable Quote

“None of them would directly negate the entire billionaire tax, but they would kick out legs from under the stool, if that makes sense.”
— Laura Nelson (04:58)

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3. U.S.-Iran Conflict: End in Sight?

(07:33 – 07:56)

Key Points

• Diplomatic Negotiations:

  • White House says the war with Iran could end before President Trump’s May 14th-15th summit with China’s Xi Jinping.
  • U.S. threatens more attacks if Iran doesn’t negotiate.
  • Iran has officially rejected U.S. proposals but is entertaining diplomacy via Arab mediators.

• Legislative Authority:

  • Trump administration says it doesn’t plan to seek congressional authorization for the war.

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4. Venezuela’s Declining Crime Rate

(08:35 – 12:27)

Key Points

• Historic Crime Rates:

  • Venezuela, once known as the “murder capital of the world,” has seen a sharp decline in crime.
  • Homicides peaked at 90 per 100,000 (a decade ago). The government now claims 3 per 100,000; independent experts estimate “low 20s”—still high but much improved.

• Factors Behind the Decline:

  • Mass migration: 8 million people (a quarter to a third of the population) left Venezuela, draining both prospective criminals and victims.
  • Economic collapse made crime less profitable.
  • Police sweeps: Large-scale, often violent security interventions reduced criminal activity but at the cost of alleged extrajudicial killings.

• Societal Impact:

  • Streets that were once empty at night are now busier; people feel less threatened by motorcycles (previously a symbol of robbery).
  • Improved security is starting to attract cautious foreign investment interest.

Memorable Moments

“People aren't running in panic when they see a motorcycle pass by these days, which in years past would have been probably a guaranteed robbery.”
— Kejal Vias (09:36)

"Mass migration that the country saw is probably the number one reason that you see criminologists cite. Over the last 10, 12 years, we saw roughly 8 million people from Venezuela leave. That's between a quarter and a third of the general population."
— Kejal Vias (10:09)

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5. Airport Security: Clear Secure’s Boom

(12:32 – 13:28)

Key Points

• Long Waits:
  • Six weeks since a lapse in DHS funding, airport security lines have grown, steering travelers to alternatives.
• Clear Secure:
  • The company behind the “Clear” fast lane sees record demand: 289,000 app downloads since March—triple last year’s rate.
  • Stock is up 60% in a month.

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Timestamps for Key Segments

• Meta/YouTube trial discussion: 00:34 – 03:24
• California billionaire tax: 04:12 – 06:10
• U.S.-Iran War update: 07:33 – 07:56
• Venezuela crime drop: 08:35 – 12:27
• Clear Secure benefit: 12:32 – 13:28

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Notable Quotes & Moments

• "Meta has lost two cases in the span of two days, accusing them of social media harms towards children and being responsible for the design of their apps. So this is a landmark case."
  — Megan Bobrowski, 02:00

• "None of them would directly negate the entire billionaire tax, but they would kick out legs from under the stool, if that makes sense."
  — Laura Nelson, 04:58

• "People aren't running in panic when they see a motorcycle pass by these days, which in years past would have been probably a guaranteed robbery."
  — Kejal Vias, 09:36

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Conclusion

This episode’s major takeaway is the potential legal and regulatory turning point for social media platforms after being held liable for harm to children—a precedent that could impact thousands of pending litigation cases. The show also delivers nuanced looks at California’s high-stakes battle over billionaire taxation, Venezuela’s remarkable drop in violent crime, evolving dynamics in the U.S.-Iran conflict, and the changing face of airport travel amid governmental gridlock.

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Transcript

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[Alex Osola]

A landmark decision in California where a jury finds MeTA and YouTube negligent and says the way their apps are designed hurts kids. Plus, after more than a decade of rampant violence and crime, Venezuela is starting to feel safer. We get into why.

[Kejal Vias]

Around 10, 15 years ago, streets were so barren at night, people couldn't go out. You'd call a taxi just to go a few blocks. People were very, very scared of being robbed, mugged, kidnapped. It's really one of the most remarkable changes.

[Alex Osola]

And security lines at airports are growing. One company is a clear winner. It's Wednesday, March 25th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. In Los Angeles, a jury ruled today that Meta, which owns Instagram and Google's YouTube, were negligent for operating products that harmed kids and teens. And failing to warn about those dangers, the jury ordered the companies to pay $6 million in damages. The decision comes just a day after another verdict in New Mexico that found Meta liable for failing to protect young people from online dangers. On that decision, Meta said it would appeal. For more on the outcome of the Los Angeles trial, I'm joined now by WSJ tech reporter Megan Bobrowski. Megan, what does today's verdict mean for the two companies in question? Meta and YouTube.

[Megan Bobrowski]

Meta has lost two cases in the span of two days accusing them of social media harms towards children and being responsible for the design of their apps. So this is a landmark case. Both these cases had financial penalties attached to them. And so in the case yesterday, Meta was ordered to pay $375 million for reference to that is 11 60th of the revenue they made in the last quarter. So a very, very small amount of the money they actually made. What these cases are really about is about setting precedent that these companies are not Shielded by Section 230 as much as people might have thought they've been.

[Alex Osola]

To remind listeners. Section 230 is part of a 1996 communications law that's been really important for Internet companies. It's broadly protected them from being held liable for things like the videos and other posts on their plat. So Megan, what does this verdict mean for social media companies? Will they have to change their business practices?

[Megan Bobrowski]

This is all happening in real time. There are thousands of other cases similar to these ones that are going to trial in California. And so at a certain point, if they're losing these cases, do they keep going to trial with these? Right. Or do you settle, make changes and do something else? That's sort of what we're looking to see here is what the fallout is from this.

[Alex Osola]

That was WSJ tech reporter Megan Bobrowski. Meta and Google say they plan to appeal. In California, a battle is underway over a proposed billionaire tax. We've talked before on the show about a ballot measure that would impose a one time 5% wealth tax on billionaires. And the billionaires are fighting back with ballot measures of their own. And unsurprisingly, they've got deep pockets. The organization that proposed those countermeasures has collected nearly $80 million from tech and business leaders since January. Journal Enterprise reporter Laura Nelson is based in Los Angeles and joins me now. Laura, the organization, which is called Building a Better California, describes itself as a nonpartisan organization working to tackle long term issues. How is it pushing back against the proposed wealth tax?

[Laura Nelson]

That's right. So they have proposed three ballot measures of their own, each of which would take aim at a certain portion of the billionaire tax proposal. One of them would require more auditing of special tax programs in the state and would also set up a possible collision course with the billionaire tax over how some types of tax revenue can be spent. Another would bar retroactive taxes and new taxes on personal property. And then there's a third that would bar new taxes from bypassing rules that California has about how tax revenue needs to be spent for schools. So all three of these, none of them would directly negate the entire billionaire tax, but they would kick out legs from under the stool, if that makes sense.

[Alex Osola]

Who are some of the people who are pushing back on this proposed billionaire tax?

[Laura Nelson]

So the main funder of this group is Sergey Brin, the co founder of Google. He has given about $45 million, more than half of the funding to this nonprofit that's been disclosed. But there's a lot of other scions of tech and business that have contributed as well. Well known venture capitalists from the Bay Area, including Michael Moritz and John do, the co founder of Stripe, Patrick Collison, and more than $3 million from the former chief executive of Google, Eric Schmidt.

[Alex Osola]

Let's talk about where the proposals actually stand. So the billionaire tax is still getting signatures from voters. How likely does it seem to become a ballot measure and then potentially law?

[Laura Nelson]

We are about two months away from being able to answer that question. Campaigns that want to make sure that they will qualify their measures for the November ballot have about six weeks left to gather the signatures that they and I think it's safe to say that with both the billionaire tax and with the countermeasures, it will be down to the wire. We are within weeks of the deadline passing and they're all still out there.

[Alex Osola]

That was WSJ Enterprise reporter Laura Nelson. Thanks, Laura.

[Laura Nelson]

Thank you.

[Alex Osola]

Coming up, the latest on when the White House says the war with Iran will end and the company that's offering travelers a way around those hours long wait times at airports. That's after the break. Score more with the college branded Venmo debit card and earn up to 5% cash back with Venmo Stash got paid back with the Venmo debit card. You can instantly access your balance and spend on what you want, like game day, snacks, gear, tickets and more. The more you do, the more cash back you can earn. Plus, there's no monthly fee or minimum balance. Sign up [e-mail] collegecard. The Venmo MasterCard is issued by the Bancorp Bank N.A. select schools available Venmo Stash terms and exclusions apply at Venmo me stash terms max $100 cash back per month. Today, the White House threatened more attacks on Iran if Tehran doesn't make a deal to end the conflict. Press Secretary Caroline Levitt confirmed the US Is negotiating to end the war, but declined to say who it's been talking to. Iran has publicly rejected the US Proposal to end the war, but Arab mediators say the country's leaders are willing to listen to diplomatic efforts. Still, both sides are far apart and discussions could fail. During a news briefing today, Levitt said the war was on track to end by the time President Trump meets with Chinese leader Xi Jinping in May.

[Laura Nelson]

We've always estimated approximately four to six

[Alex Osola]

weeks, so you could do the math on that, Mario. But we do look forward. I know the president looks forward to going to China on May 14th and 15th. Levitt also said that the Trump administration doesn't plan to seek congressional authorization for the war in Iran. Cautious optimism that the War in the Middle east may be nearing. A resolution lifted stocks. The NASDAQ led the gains and closed up 0.8%. Brent crude, the international benchmark, fell below $100 a barrel. For years, Venezuela was one of the most dangerous countries in the world. Drivers ran red lights to avoid carjackings. Public spaces like bars and parks would empty as night fell so people wouldn't get kidnapped. The country's capital, Caracas, was called the murder capital of the world by several tracking organizations. Now, though, crime has dropped dramatically. Journal reporter Kil Vias was recently in Caracas and joins me now with more. Kegel, why did the crime situation get so bad in Venezuela in the first place?

[Kejal Vias]

So Venezuela's had problems with urban violence going back decades, but it got significantly worse under Hugo Chavez. It was easy to find guns. Gasoline was free. So between that and very lax law enforcement, you saw an absolute surge of in kidnapping and homicide rates.

[Alex Osola]

Fast forward to today. The government of Delsey Rodriguez says the homicide rate in 2025 fell to 3 per 100,000, which is lower than the U.S. now, criminologists were pretty skeptical of that number. But you report that life on the ground does seem to speak to a drop in the crime rate. How are we seeing that play out across the country?

[Kejal Vias]

Absolutely. So Venezuela peaked about a decade ago at a rate of 90 homicides per 100,000 inhabitants. The government has its version of 3 per 100,000. Independent criminologists estimate somewhere in the low 20s range. It's still high, comparable to neighboring Colombia or even Mexico. But it's a huge improvement. And you see it in the way people live their daily lives. Around 10, 15 years ago, streets were so barren at night, people couldn't go out. You'd call a taxi just to go a few blocks. People were very, very scared of being robbed, mugged, kidnapped. It's really one of the most remarkable changes. People aren't running. Panic when they see a motorcycle is passed by these days, which in years past would have been probably a guaranteed robbery. And now it's more likely they're bringing you your delivery or they're your moto taxi driver.

[Alex Osola]

That sounds like quite a transformation. Why this drop?

[Kejal Vias]

So the drop has a few different explanations, but the mass migration that the country saw is probably the number one reason that you see criminologists cite. Over the last 10, 12 years, we saw roughly 8 million people from Venezuela leave. That's between a quarter and a third of the general population. And cataclysmic economic collapse under Nicolas Maduro actually made the Life of a gangster also difficult. There was less money to steal. Another major factor is these police sweeps. The Venezuelan government ran for several years large security teams going into the slums and going on killing sprees. And so from that era, we've had thousands of allegations of extrajudicial killings. However, it also did contribute to a major shift in city life in Venezuela.

[Alex Osola]

You mentioned that mass migration from Venezuela was a big factor in reducing crime there. President Trump has blamed migrants from Venezuela for crime in the U.S. how have politicians in other countries reacted?

[Kejal Vias]

When you have an exodus of 8 million people, there's going to be a small fraction of society that will be prone to criminal life. And so certainly around the Americas, from Chile to Peru to Colombia, all the way up to the US we saw local authorities complain about activities from Venezuelan criminal syndicates that moved in. And these became really hot button political issues.

[Alex Osola]

But back in Venezuela, the security situation we've been talking about is going to be put to the test soon. Right, because investment scouts are going to be there looking at business opportunities. What does the changing security situation mean for Venezuela's economic growth?

[Kejal Vias]

Improving security is a crucial step to getting investors confident enough to explore opportunities and eventually sign deals that the country badly needs for its economic development. We've spoken to a number of people who are organizing investor trips in the upcoming weeks. And yes, they are hiring armored cars, hiring bodyguards, following corporate protocol in many cases. It's interesting to watch that happen at the same time that the country, at least the capital city, feels safer than it has at any time in 15 years.

[Alex Osola]

That was WSJ reporter Kejal Vias. Thanks, Kejal.

[Kejal Vias]

Thank you, Alex.

[Alex Osola]

And finally, it's been more than six weeks since the Department of Homeland Security funding lapsed and airport security lines have gotten frustratingly long. That's benefiting one company in particular, Clear Secure. That's behind the Clear fast lane through airport security. It costs a couple hundred dollars per year. Since the beginning of March, passengers have downloaded the Clear app 289,000 times. Data from the market intelligence firm Sensor Tower shows that's more than triple the number from a year ago. And Clear Stock is up 60% from last month. And that's what's news for this Wednesday afternoon. Today's show is produced by Pierre Biennama and Imani Moise, with supervising producer Talia. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

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