Zuckerberg to Testify in First Major Social Media Addiction Case

Summary

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

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

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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.

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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.

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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)

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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|

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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.

Transcript

[A]

Voices are powerful things. At Vanguard, investors are also owners and their voices are heard. And now with investor choice, they have an even greater voice when investing. It's just another reason millions of investors have turned to Vanguard for 50 years. 50 million investors, 50 million voices Vanguard. Vanguard is owned by its funds, which are owned by Vanguard's fund shareholder clients. To learn more, visit vanguard.com, all investing is subject to risk. Vanguard Marketing Corporation Distributor figure as of January 2025.

[B]

Mark Zuckerberg faces his day in court in a landmark trial testing claims that social media harms teens. Plus, India tries to model a frugal AI strategy for the developing world and strain in the US Commercial real estate market nears a breaking point.

[C]

The problem with office is not a cyclical problem. People just are using office less because of hybrid work, because of remote work. That's not going to come back. And as a result, these loss in value situations that we're seeing won't change.

[B]

It's Wednesday, February 18th. I'm Luke Vargas for the Wall Street Journal, and here is the AM edition of what's news, the top headlines and business stories moving your world today. Meta CEO Mark Zuckerberg is set to testify today in a landmark trial on social media addiction. It's the first of several bellwether trials planned in California and revolves around a young woman's claim that platforms like Meta's Instagram foster addiction in adolescence and caused her a host of mental health problems. The plaintiff's lawyer, Mark lanier, told Fox Business's Varney Co. What he plans to ask Zuckerberg. Well, we slapped a subpoena on Mark Zuckerberg on purpose because we've got documents with his name that he authored that we believe show he put profits over the safety of children. Meta says that it has consistently put teen safety ahead of growth. The company's lawyers say its products aren't addictive and aren't responsible for a plaintiff's mental health issues. Meanwhile, Europe is dialing up the pressure on big tech. The Spanish government this week asked prosecutors to investigate several social media platforms for potential crimes against minors relating to AI generated images. And that's just the start of it. Ireland is now probing X, the UK's Prime Minister is cracking down on chatbots, and the EU wants TikTok to ditch its infinite scroll. The companies have denied any wrongdoing. Journal tech reporter Sam Schechner said the concerted push against predominantly American companies isn't.

[D]

Entirely a coincidence in this political moment. After what's happened with Greenland, after threats from the Trump administration European governments are eager to show that they aren't going to back down in enforcing EU tech laws. Those can relate either to digital competition or they can relate to content moderation. The Trump administration has made pretty clear that they want Europe to back off on enforcing some of these rules. At first there was maybe a little bit of tentative enforcement, soft rolling some of these things to help secure trade deals, but the shine is off right now and they're not holding back.

[B]

And specifically around children. Sam said that while some governments are trying to regulate tech platforms, others are considering stricter measures.

[D]

Yeah, it looks like banning social media for younger teens is the new viral trend for governments. What started as this sort of isolated legislative gamble from Australia has spread to over a dozen capitals where leaders are seizing on these issues related to childhood. France earlier this year, the lower house of parliament passed a bill that would do that for under 15s. The UK is launching a consultation. And then just this week, one of the two parties in Germany's ruling coalition threw its weight behind a proposal to do something similar in Germany. Now, they're not necessarily agreed on the age yet, but that puts Europe's largest economy in the bucket of these countries like France, Spain, the uk, Denmark actively considering implementing some of these bans.

[B]

Well, the effect of AI and chat bots are also front and center at India's AI Impact Summit this week. In just a few years, the event has turned into a key date on the calendar for private sector AI players as well as government officials eager to regulate or tap into the technology potential. Our South Asia Bureau Chief, Tripty Lahiri is in New Delhi this morning for that summit. Tripty, I've seen that Indian Prime Minister Narendra Modi has been out there touting AI's potential prospects this week, but also emphasizing this morning that the technology needs to be inherently human, mutually beneficial. You know, I'll be honest, it sounds a little fluffy, but I'm curious if there's any real ideas coming to the fore about how to make it.

[E]

So I totally hear what you're saying. There's a lot about AI that can theme in the realm of hype and exaggeration, but I think India is a good place to talk about what does AI really mean for people? Because if AI can do basic coding and do lots of basic human jobs, that's a big challenge for India, which has built a big tech industry on doing those jobs cheaply for a lot of the world. So when India's leader says we need AI to be human centric he's certainly thinking about those challenges and how do we make sure AI just doesn't put a lot of people out of work. At the same time, I think India does see real benefits. For example, helping to translate things from one to another of India's many languages in real time. That was something which was really, really difficult until recently. And once you have something like that, a lot of other things can be built on it Possibilities.

[B]

You sort of packaged them up in your recent reporting as a frugal AI strategy that maybe India thinks could be a blueprint for the world. I mean, take us into what that strategy looks like.

[E]

If you're going to build a huge model that has answers for everything and everyone, yes, it's going to be expensive, it's going to need tons of energy, it's going to need tons of computing power, and that is not going to be frugal. But what India is saying is, hey, we have a specific problem with delivering these health services to a village. Or we have an issue with we don't have enough clerks and stenographers and court. So 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. And India, by the way, has 50 million pending cases. But it inherited this legal system from Britain when it was a colony. And now that would enable India to offer a tool that it developed here to other countries with that same shared legal system.

[B]

How's that gone over with the heads of big tech companies that I prefer? Those expensive solutions are the ones that are taken off the shelf and paid for by countries like India.

[E]

Well, so far they're all championing and saying we're here to support India's AI strategy as they would. And frankly, they see a lot of opportunity as well. Just because India is going to develop some of these kinds of tools cheaply, it doesn't mean that India is not going to be a market as well. India is very keen for data centers to come in, is offering incentives for that, a tax break for that. So I think that they see a lot to be gained. Even if alongside, India is promoting this parallel path for how AI could develop.

[B]

And because you mentioned trying to solicit the data center investment there, what are the prospects for that?

[E]

What is really going to be something India has to solve is the electricity needs and the water needs for cooling. So, you know, India is in any case a country where water is an issue a lot of the year. And similarly, on the power front, actually, the average person here consumes far less electricity than they should. If all things being equal, as they get richer, they're going to need more power. But then these data centers are also going to need power. So India's going to have to figure out how does it deploy the power that it has in ways that are fair.

[B]

All right. You've laid out the big opportunities. Some profound fault lines coming down the road here as well. I've been speaking to Wall Street Journal's South Asia bureau chief, Tripti Lahiri in New Delhi. Tripty, thank you so much for the update.

[E]

Thank you for having me.

[B]

Coming up, we've got the rest of the day's news, including fresh warning signs from the commercial real estate sector after the break.

[A]

Voices are powerful things at Vanguard. Investors are also owners and their voices are heard. And now with investor choice, they have an even greater voice when investing. It's just another reason millions of investors have turned to Vanguard for 50 years. 50 million investors, 50 million voices. Vanguard. Vanguard is owned by its funds, which are owned by Vanguard's fund shareholder clients. To learn more, visit vanguard.com, all investing is subject to risk. Vanguard Marketing Corporation Distributor figure as of January 2025.

[B]

Japan plans to invest $36 billion in the US the first of its $550 billion strategic trade and investment agreement with Washington. The Investments include a $33 billion gas fired power plant, Ohio, $2 billion in an LNG export facility in Texas, and $600 million for a diamond grit plant in Georgia. Meanwhile, Japan's finance minister is defending the country's economic plans after the IMF urged it not to cut taxes and to refrain from fiscal loosening. That warning follows Prime Minister Sanae Takaichi's pledge to suspend sales tax on food and beverages to address affordability concerns. Well, here's a scary zombie. Office buildings across the US Are becoming a real headache for commercial real estate, with lenders starting to call in tens of billions of dollars of troubled loans. Refinancing property debt has become difficult since interest rates started to soar in 2022. And in January, the delinquency rate for office loans in commercial mortgage backed securities climbed to a record 12%. Here's the Journal's Peter Grant.

[C]

For a couple years, lenders were practicing a strategy known in the business as extend and pretend. Basically, what that means is that when loans matured and borrowers couldn't repay them, lenders would extend them, hoping that conditions would improve. Now that hope is fading and a growing number of loans are moving into special servicing or default. So A good way to think about it is that the industry spent a few years basically buying time and now that time is running out and everyone owners, lenders, cities, they have to figure out what these buildings are really worth. In this new post pandemic world.

[B]

Peter says that many lenders are now having to accept that the decline in property values and cash flow is part of a new reality where hybrid work has permanently reduced demand for most office space.

[C]

The problem with office is not a cyclical problem. The performance is not going to improve down the road and as a result, these loss in valuations that we're seeing won't change. And there's a reckoning that the lenders and the borrowers have to go through to realize that lower value and they have to deal with it either through foreclosure or default or something else that's going to be very painful. And they've been trying to avoid the pain up until now.

[B]

That said, there are bright spots in commercial real estate with industrial buildings and retail centers continuing to perform well. And today's release of minutes from the latest Fed meeting will kick off a busy few days for investors trying to parse the direction of the US economy. Tomorrow it's jobless claims and on Friday, the Fed's preferred inflation gauge and an early estimate of GDP growth in the last quarter. Many economists are looking for signs of the so called K shaped economy where the highest earners continue to thrive while lower income brackets struggle. On the latest episode of WSJ's take on the week, Royal bank of Canada chief economist Francis Donald said that the K shape is making predicting growth a lot harder.

[F]

You know, if you go into a room of 100 people and you ask everyone, how are you feeling about the economy? A consumer confidence indicator weights everybody the same. Everybody gets one vote in that. But when you go out in the real economy, that's not the case. Not everybody has an equal vote when it comes to total spending. We know there's plenty of data that'll tell you the top 10% of Americans spend 50% of all of the money. So economists have had this struggle which is, well, do we ignore that confidence data altogether? Do we say, well, that's the case shape and it's irrelevant, or do you recognize it as just telling you something different? If I want to forecast retail sales or gdp, I can't spend as much time looking at something like confidence data. But if I actually want to think about the real economy, if I want to help companies understand who their customer base is, if I want to help policymakers make the right decisions, then ignoring things like confidence data and saying it's just the K shape, that can be really dangerous.

[B]

And for more of that, interview with RBC's Frances Donald, check out the link we've left in our show notes. And that's it for what's news for this Wednesday morning. Today's show was produced by Daniel Bock and Hattie Moyer. Our supervising producer is Sandra Kilhoff. And I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show.

[D]

Until then, thanks for listening.

[A]

Voices are powerful things At Vanguard, investors are also owners and their voices are heard. And now with investor choice, they have an even greater voice when investing. It's just another reason millions of investors have turned to Vanguard for 50 years. 50 million investors, 50 million voices. Vanguard. Vanguard is owned by its funds, which are owned by Vanguard's fund shareholder clients. To learn more, visit vanguard.com, all investing is subject to risk. Vanguard Marketing Corporation Distributor figure as of January 2025.