WSJ What’s News: “Zuckerberg to Testify in First Major Social Media Addiction Case”

Date: February 18, 2026
Host: Luke Vargas (Wall Street Journal)

Episode Overview

This episode dives into several major business and global news stories, headlined by Mark Zuckerberg’s imminent testimony in the first trial testing claims that social media causes teen addiction and mental health harms. Also covered are Europe’s intensifying tech regulation efforts, India’s pragmatic approach to AI, the worsening U.S. commercial real estate outlook, and challenges in measuring the U.S. “K-shaped” economy.

Key Discussion Points & Insights

1. Zuckerberg Set to Testify in Landmark Social Media Addiction Trial

• Context:
  Mark Zuckerberg, CEO of Meta, is due to testify in a bellwether California trial addressing whether platforms like Instagram are addictive and harm adolescent mental health.

  • The trial may set precedent for numerous pending cases on tech and child safety.

• Key Perspectives:

  • Plaintiff’s Position:
    Mark Lanier, the plaintiff’s lawyer, claims internal Meta documents show Zuckerberg prioritized profits over child safety.
    • Quote: “We slapped a subpoena on Mark Zuckerberg on purpose because we've got documents with his name… that we believe show he put profits over the safety of children.” (Lanier via Fox Business, 01:20)
  • Meta’s Defense:
    Meta says it prioritizes teen safety, disputing that its products are addictive or cause mental health problems.

2. Intensifying Tech Regulation in Europe

• Broad Action Against Big Tech:
  European governments are ramping up investigations and potential crackdowns—especially around minors and AI-generated images.

  • Spain: Prosecutors probing possible crimes by social media platforms against minors.
  • Ireland: Investigating X (formerly Twitter).
  • UK: Cracking down on chatbots.
  • EU: Pressuring TikTok to limit infinite scroll features.
  • Quote: “The concerted push against predominantly American companies isn’t entirely a coincidence in this political moment.” (Sam Schechner, 02:39)

• Political Context:

  • European leaders are taking a firmer stance post-Trump administration, moving beyond tentative, trade-focused enforcement of digital laws.
    • Quote: “At first there was maybe a little bit of tentative enforcement… but the shine is off right now and they're not holding back.” (Schechner, 02:56)

• Rising Trend: Social Media Bans for Teens
  A growing number of governments are considering bans on social media for younger teens.

  • Similar legislation is pending in France (for under 15s), UK, Germany, Spain, Denmark.
  • Quote: “Banning social media for younger teens is the new viral trend for governments.” (Schechner, 03:25)

3. India’s Frugal AI Strategy

• AI Impact Summit, New Delhi:
  PM Narendra Modi promotes “human-centric” AI, aiming to balance innovation and job security.

  • Insight: India is wary that automating basic tech jobs (a local economic backbone) could lead to mass unemployment.

• Frugal, Targeted AI Development:

  • India is focusing on low-cost, high-impact AI tools for specific challenges—like legal case transcription or translating languages.
    • Quote: “India is already experimenting with software tools that can speed up transcription and court recording and witness depositions and do it in lots of languages.” (Tripti Lahiri, 05:52)
  • India’s system aims to serve emerging markets rather than invest in expensive, universal models.

• International Tech Firms' Response:

  • Global tech companies are publicly supportive, eager for India’s growing data center market, though India is intent on self-sufficient development.
  • India is offering incentives for new data center investment but faces serious electricity and water resource challenges.
    • Quote: “India’s going to have to figure out how does it deploy the power that it has in ways that are fair.” (Lahiri, 07:16)

4. U.S. Commercial Real Estate Faces Crisis

• Key Metrics:

  • Office loan delinquency in commercial mortgage-backed securities hit a record 12% in January.
  • The industry can no longer sustain “extend and pretend” tactics, where loans are renewed in the hope things improve.
    • Quote: “Lenders would extend them, hoping that conditions would improve. Now that hope is fading...” (Peter Grant, 09:48)

• Permanent Shift:

  • The hybrid and remote work trend has structurally reduced office demand; property values are unlikely to rebound.
    • Quote: “The problem with office is not a cyclical problem. The performance is not going to improve down the road…” (Grant, 10:37)

• Sector Bright Spots:

  • Industrial and retail properties are performing comparatively well despite office woes.

5. The K-Shaped U.S. Economy

• Definition:

  • The “K-shaped recovery” refers to a divergence post-pandemic: higher earners thrive, lower-income groups lag behind.

• Economic Forecasting Complications:

  • Standard consumer confidence data may mislead because top earners have major outsized influence on spending.
    • Quote: “Not everybody has an equal vote when it comes to total spending. We know… the top 10% of Americans spend 50% of all the money.” (Frances Donald, 11:48)
  • For reliable economic outlooks and policy, analysts must consider this unequal landscape.

Notable Quotes & Memorable Moments

• On Social Media Trials (Lanier, Plaintiff Attorney):

  • “We've got documents with his name that he authored that we believe show he put profits over the safety of children.” (01:18)

• On Changing Tone in Europe (Sam Schechner):

  • “They're not holding back.” (02:56)
  • “Banning social media for younger teens is the new viral trend for governments.” (03:25)

• On India’s AI Approach (Tripti Lahiri):

  • “India does see real benefits. For example, helping to translate things from one to another of India's many languages in real time.” (05:17)
  • “India is already experimenting with software tools that can speed up transcription and court recording…” (05:52)

• On Commercial Real Estate Pain (Peter Grant):

  • “The industry spent a few years basically buying time and now that time is running out…” (09:48)

• On Economic Divides (Frances Donald):

  • “If you go into a room of 100 people and you ask everyone, how are you feeling about the economy? …Not everybody has an equal vote when it comes to total spending.” (11:48)
  • “Ignoring things like confidence data and saying it's just the K shape, that can be really dangerous.” (12:34)

Timestamps for Important Segments

|Timestamp|Segment| |---|---| |00:32|Episode headlines; Meta/Zuckerberg trial preview| |01:18|Plaintiff’s lawyer on Zuckerberg’s evidence| |02:39|Sam Schechner: EU crackdown on US tech| |03:25|Trend: Social media bans for teens in Europe| |04:12|AI in India – Interview with Tripti Lahiri begins| |05:52|India’s frugal AI use-cases and strategy| |07:16|India’s data center ambitions and infrastructure challenges| |09:48|Peter Grant: Commercial real estate outlook| |11:48|Frances Donald: The K-shaped economy and its measurement challenges|

Summary

This episode delivers a concise but thorough briefing on the landmark Zuckerberg social media addiction case, the global wave of tech regulation, India’s pragmatic AI approach, and shifting dynamics in both commercial real estate and the U.S. economy. The tone is journalistic and matter-of-fact, with expert guests succinctly unpacking business, legal, and policy implications for a global audience.

Listeners come away with new insight into the mounting pressure on Big Tech—both in U.S. courts and in the EU—and a real-world look at how emerging economies like India are seeking to shape AI’s future to maximize social benefit and minimize disruption. The economic reporting underscores that post-pandemic market realities demand new thinking, whether in real estate, labor, or macro forecasting.