This week, the world’s biggest tech and streaming companies found themselves balancing soaring ad ambitions with mounting legal and regulatory scrutiny. In today’s MadTech Daily, we cover ministers being urged to act as AI adoption hits 95%, Ofcom drafting new rules for streaming platforms, and Tencent missing Q1 forecasts while doubling down on AI.

Meta led the week with forecasts pointing to another major year for its advertising business. According to WARC Media, the company is on track to generate roughly USD$240bn (£189.6bn) in ad revenue in 2026, following a 22% rise to USD$196bn (£154.8bn) in 2025.

At the same time, Meta is facing mounting regulatory and legal pressure on multiple fronts. In the UK, the company has launched a legal challenge against Ofcom over the fines structure tied to the Online Safety Act, arguing that penalties based on global revenue are disproportionate. 

Meanwhile, in the US, California has sued Meta over alleged scam advertisements on Facebook and Instagram. The lawsuit accuses the company of profiting from fraudulent ads while failing to adequately protect users from deceptive promotions circulating across its platforms.

Netflix also came under scrutiny this week after Texas filed a lawsuit accusing the streamer of secretly collecting and monetising consumer data while promoting itself as a privacy-conscious platform. The case further alleges that Netflix designed features intended to encourage addictive viewing habits among children and families.

Even so, the streaming giant continues to deepen its advertising capabilities. Advertisers in the UK and wider EMEA region will be able to apply Amazon shopping data to Netflix inventory through Amazon DSP. The partnership gives brands access to detailed consumer shopping insights.

TikTok also unveiled a new ad-free subscription tier in the UK, allowing users to pay to remove advertising and opt out of targeted ad tracking. The move reflects broader industry shifts toward greater consumer control over personal data and privacy preferences.

Apple, meanwhile, agreed to pay USD$250m to settle a class-action lawsuit over claims that it exaggerated the AI capabilities of Siri in marketing campaigns for newer iPhone models. Plaintiffs argued that Apple promoted advanced personalised AI features that were either unavailable at launch or remain unreleased, raising broader questions about how tech companies market emerging AI products.