In today’s Digest, we look at the FTC moving toward a settlement in an ad boycott investigation, the Massachusetts Supreme Judicial Court ordering Meta to face a youth addiction lawsuit, and YouTube raising Premium prices.

Ad companies in ad boycott settlement talks with FTC

The Federal Trade Commission is in negotiations with several of the world’s largest advertising groups to resolve an antitrust probe into whether they coordinated boycotts against certain platforms, including X. The inquiry, launched last year, has examined firms such as Publicis Groupe, WPP, Dentsu, Havas, and Horizon Media, focusing on whether they engaged in anticompetitive behaviour by collectively withholding ad spend. 

Under a proposed settlement, some of these firms would agree not to steer client budgets away from platforms based on political or ideological content, while still allowing individual advertisers to make their own placement decisions.

Talks between the Federal Trade Commission and major advertising groups remain ongoing, according to people familiar with the matter, with no guarantee that a final agreement will be reached. 

Massachusetts Supreme Judicial Court orders Meta to face youth addiction suit

The Massachusetts Supreme Judicial Court has ruled that Meta must face a lawsuit alleging it deliberately designed features on its platforms to addict young users.  Like the landmark Los Angeles case which found Meta and YouTube liable for designing addictive platforms, the claims focus on the company’s conduct rather than user-generated content. 

Writing for the court, Justice Dalila Argaez Wendlandt said the case, brought by Attorney General Andrea Joy Campbell, alleges harm stemming from Meta’s own actions, including designing platforms that exploit the developmental vulnerabilities of children and misleading users about the safety of Instagram. The ruling effectively allows the case to move forward by distinguishing between platform design and third-party content.

Campbell described the decision as a “major step” toward holding social media companies accountable for practices she says have contributed to a youth mental health crisis. 

Meta, however, rejected the distinction drawn by the court, arguing it remains confident the evidence will demonstrate its commitment to user safety and noting that the ruling does not address the case’s merits. 

YouTube to raise premium prices

YouTube is increasing the price of its Premium subscription tiers in the US, marking its first hike since 2022. Subscribers have been notified that the new pricing will take effect from the June billing cycle. The cost of individual plans will rise by USD$2 (£1.58) to USD$15.99 (£12.63) per month, while family plans will increase by USD$4 (£3.16) to USD$26.99 (£21.32). Other tiers, including Lite and Music Premium, will also see USD$1 (£0.79) increases. 

The price adjustment means users will pay more for an ad-free or reduced-ad experience, alongside features such as background play and offline downloads.