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Meta is facing several overlapping issues, not one single crisis: it announced broader uses for activity data shared by other businesses, European regulators have made a preliminary finding about Facebook and Instagram design, and legal and policy changes could affect advertising tools. Meta’s latest reported figures still show growth in revenue and advertising measures; the cited evidence does not establish broad advertiser departures or a measured advertising collapse.

What changed in how Meta says it uses activity data?

In June 2026, Meta said it would use activity shared by other businesses not only to personalize ads, but also to personalize people’s Feed and responses from its AI features. Meta said this update did not involve collecting new data. The information at issue is activity businesses share with Meta about a person’s interactions with their websites or services.

Meta also announced changes to the controls for this activity. It said it would expand the setting called “Activity from other businesses” and discontinue the separate “Your activity off Meta technologies” setting, which let people disconnect shared activity from their account. Meta described the expanded setting as a control, but the change also removes that separate disconnection option. These are different aspects of the announcement: Meta’s claim that it is not collecting new data does not mean the control arrangement is unchanged.

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Meta said the changes would first take effect in the United States and some other countries in July 2026, with more countries to follow. Its announcement establishes the planned timing, but does not by itself confirm the rollout status for every country or account. People can check the activity controls shown in their Meta account; the available settings may depend on location and rollout.

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Why are Facebook and Instagram’s design choices under scrutiny?

On July 10, 2026, the European Commission said it had preliminarily found Facebook and Instagram in breach of the EU Digital Services Act over their design. The Commission identified infinite scroll, autoplay, push notifications and personalized recommender systems. It said Meta had not adequately assessed risks to physical and mental wellbeing, including for minors and vulnerable adults, and that existing measures did not sufficiently address the risks it identified.

This is a preliminary regulatory finding, not a final decision or a court judgment. It concerns the Commission’s assessment of Facebook and Instagram under EU law; it should not be presented as a finding that applies everywhere or as a settled conclusion about the effects of every feature.

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European Commission Executive Vice-President for Tech Sovereignty, Security and Democracy Henna Virkkunen said: “protecting the physical and mental health of Europeans must be a priority for social media platforms. The Digital Services Act provides a clear framework to hold platforms accountable for the addictive design and effects of their services. We are fully committed to enforcing our legislation in Europe.”

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What has Meta said about identifying underage accounts?

Meta says it uses contextual information from profiles and visual clues to help identify accounts it believes may belong to underage users. The company says suspected accounts can be deactivated while the user is asked to verify their age. In a July 31, 2026 correction, Meta clarified that its AI does not use biometric data, create facial fingerprints or identify who is in a photo. These are Meta’s descriptions of its own age-assurance system, not independent verification of how it operates.

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Why might advertisers be concerned about Meta’s ad tools?

Meta’s June 2026 SEC filing says substantially all of its revenue comes from advertising on Facebook and Instagram. Its advertising tools depend on signals from Meta’s services and from websites and services the company does not control. The filing identifies regulatory developments, changes by third-party mobile operating systems and browsers, and limits on available data signals as risks that could adversely affect targeting and measurement.

That exposure helps explain why changes in privacy rules, platform policies and legal requirements matter to advertisers: they can affect the signals and tools used to reach audiences and assess campaign results. It does not establish that advertisers broadly are leaving Meta, or that a particular change has caused campaigns to perform worse.

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Do Meta’s latest figures show an advertising collapse?

No. In its second-quarter 2026 results, Meta reported growth in both revenue and its advertising measures. These are company-reported figures, not evidence that users approve of Meta’s practices or that advertisers are satisfied.

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Measure Meta’s reported result What it does—and does not—show
Revenue $60.80 billion in Q2 2026, up 28% year over year Reported company revenue growth; it does not measure public opinion or advertiser concern.
Ad impressions Up 14% year over year across Meta’s Family of Apps in Q2 2026 More impressions were reported; this alone does not show advertiser satisfaction or campaign effectiveness.
Average price per ad Up 12% year over year in Q2 2026 A reported average price increase, not a measure of advertiser retention.
Family daily active people 3.60 billion average in June 2026, up 3% year over year A company-reported audience measure; it is not a measure of whether people approve of Meta.

Meta also reported $2.40 billion in charges related to legal proceedings and $1.18 billion in severance expenses connected with its May 2026 headcount reduction. Those costs provide context for the quarter, but do not overturn the growth in the operating and revenue measures above or establish a single cause for the legal expenses.

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What is the status of Meta’s antitrust case?

Meta’s June 2026 SEC filing says the Federal Trade Commission appealed on January 20, 2026, the court’s November 18, 2025 judgment in Meta’s favor in the FTC antitrust case. An appeal means the case is proceeding through review; it is not a final finding that Meta violated antitrust law. The filing also describes a wider set of legal and regulatory risks involving privacy, competition, advertising, safety and youth-related issues.

How should readers interpret the different developments?

Development Who is making the claim? Status and scope
Expanded use of business-shared activity data and revised controls Meta Announced policy and control changes; initial rollout was planned for the US and some other countries in July 2026, with additional countries to follow.
Facebook and Instagram design European Commission Preliminary DSA finding dated July 10, 2026; concerns design features in the EU, not a final decision.
Age-assurance technology Meta Company description of its system, including its July 31 correction about biometric data and photo identification.
Advertising and audience figures Meta Company-reported Q2 2026 results; growth figures do not establish user approval or advertiser sentiment.
FTC antitrust case Meta’s SEC filing describes the procedural status The FTC appealed the November 2025 judgment in Meta’s favor on January 20, 2026; an appeal is not a final liability finding.

Taken together, the developments point to scrutiny of data use, product design and the rules governing advertising—not proof that Meta’s business has collapsed. The cited sources do not quantify how concerned users or advertisers are, how many advertisers may have left, or whether any specific policy change caused a change in campaign performance.

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