---
title: "How Tech Companies Turned Addiction Into a Business Model"
date: 2026-04-06
description: "Instagram, TikTok, and other platforms use deliberate design patterns to keep children scrolling. Courts and regulators are starting to hold them accountable."
tags: ["social-media", "addiction", "child-protection", "meta", "tiktok"]
categories: ["legislation"]
author: "Agiliton"
slug: "tech-companies-addiction-business-model"
translationKey: "tech-addiction-business-model"
---

Nearly half of all teenagers say they feel addicted to social media. That is not an accident. The platforms they use every day — Instagram, TikTok, Snapchat, YouTube — were designed to be difficult to put down. In 2026, courts and regulators around the world are beginning to treat this as what it is: a deliberate business strategy built on the attention of children.

Here is what parents need to know about how these platforms work, what the evidence shows, and what is being done about it.

{{< addiction-chart >}}

## The Addiction Playbook

Social media platforms use a set of well-documented design patterns that exploit how the human brain processes reward and anticipation. These are not bugs or side effects — they are core product features.

**Infinite scroll** removes natural stopping points. Unlike a book with chapters or a TV show with episodes, a social media feed never ends. Users keep scrolling because there is always something new just below the fold.

**Variable rewards** operate on the same psychological principle as slot machines. Likes, comments, and shares arrive unpredictably, triggering dopamine responses that keep users coming back. Former Google design ethicist Tristan Harris has described it bluntly: "Several billion people have a slot machine in their pocket."

**Autoplay and recommendations** ensure that content continues without any action from the user. Personalized algorithms learn what keeps each individual engaged longest and serve more of it automatically.

**Streaks and notifications** create artificial urgency. Snapchat streaks punish users who stop engaging, even briefly. Push notifications like "your friends are watching" trigger fear of missing out and pull users back into the app.

**Personalized recommender systems** go further than simple suggestions. They build detailed behavioral profiles of each user — including minors — and use those profiles to maximize time spent on the platform.

These patterns are not incidental. They are the product. The longer users stay, the more ads they see, and the more revenue the platform generates.

## They Knew

Internal documents from major platforms have revealed that companies were aware their products could harm young users — and continued operating the same way.

In 2021, leaked internal research from Meta showed that the company knew Instagram was linked to body image issues and depression among teenage girls. The company did not make these findings public or change the product significantly.

In 2023, the [U.S. Surgeon General](https://www.hhs.gov/surgeongeneral/reports-and-publications/youth-mental-health/social-media/index.html) Vivek Murthy issued a formal advisory on social media and youth mental health, warning that current evidence indicates social media poses "a profound risk of harm" to children and adolescents. He later called for warning labels on social media platforms — a step that would require Congressional action.

A [Meta-sponsored study](https://techcrunch.com/2026/02/17/metas-own-research-found-parental-supervision-doesnt-really-help-curb-teens-compulsive-social-media-use/) published in 2026 found that trauma-exposed children are the most vulnerable to social media dependency, and that parental controls are largely ineffective once dependency is established.

The [American Psychological Association](https://www.apa.org/topics/social-media-internet/health-advisory-adolescent-social-media-use) has issued its own health advisory on adolescent social media use, echoing the Surgeon General's concerns about the impact on developing minds.

{{< addiction-stat num="5h" color="#667eea" label="Average daily social media use among teenagers — Gallup/Pew Research" >}}

## The Numbers

The scale of the problem is difficult to overstate.

- **95%** of children aged 10–17 use social media regularly
- Teenagers spend an average of **5 hours per day** on social media platforms
- **47%** of teenagers report feeling addicted to social media
- Using social media for **3 or more hours daily** is linked to significantly higher rates of anxiety and depression, according to research published in [JAMA Psychiatry](https://jamanetwork.com/journals/jamapsychiatry/fullarticle/2749480)
- Children with social media addiction are **2–3 times more likely** to experience suicidal ideation, according to research from [Weill Cornell Medicine](https://news.weill.cornell.edu/news/2025/06/study-finds-addictive-screen-use-not-total-screen-time-linked-to-youth-suicide-risk)
- **45%** of U.S. teens report that social media negatively affects their sleep

{{< addiction-stat num="2-3x" color="#ef4444" label="Higher risk of suicidal ideation with social media addiction — Weill Cornell Medicine" >}}

The 2026 [World Happiness Report](https://www.worldhappiness.report/ed/2026/social-media-is-harming-adolescents-at-a-scale-large-enough-to-cause-changes-at-the-population-level/) documented that social media is "harming adolescents at a scale large enough to cause changes at the population level" — one of the strongest statements from a major global research initiative to date.

## Courts Are Catching Up

2026 has become a turning point in legal accountability for social media companies.

In a landmark trial in Los Angeles (January–March 2026), a jury found **Meta and Google liable** for harm caused by addictive design and awarded **$6 million** in damages to a 20-year-old plaintiff. TikTok and Snap settled on the eve of the verdict to avoid jury judgment.

In New Mexico, Meta was ordered to pay **$375 million** in a settlement over knowingly harming children's mental health through its platforms.

As of early 2026, over **2,400 lawsuits** are pending in a federal multidistrict litigation (MDL) against social media companies — up from around 1,200 cases a year earlier. A bipartisan coalition of **32 state attorneys general** has filed a federal complaint, and individual states including Minnesota and California have pursued their own cases.

The legal claims focus specifically on **addictive design elements** — infinite scrolling, behavioral tracking, algorithmic manipulation — rather than on third-party content. This distinction matters: it targets the business model itself.

{{< addiction-stat num="3h+" color="#764ba2" label="Daily use threshold where anxiety and depression increase significantly — JAMA Psychiatry" >}}

## Europe Leads on Regulation

The European Union has taken the most direct regulatory action against addictive design to date.

In February 2026, the [European Commission](https://digital-strategy.ec.europa.eu/en/news/commission-preliminarily-finds-tiktoks-addictive-design-breach-digital-services-act) issued a preliminary finding that **TikTok breached the Digital Services Act (DSA)** specifically because of its addictive design architecture. This was the first time the EU directly targeted the combination of infinite scroll, autoplay, push notifications, and personalized recommendations as a systemic risk to minors and vulnerable adults. TikTok faces potential fines of up to **6% of its worldwide annual turnover**.

In October 2025, the Commission found that both TikTok and Meta had systematically blocked researchers from studying how content reaches children on their platforms — a violation of DSA transparency requirements. The combined potential fines could reach approximately **$20 billion**.

Research by [Amnesty International](https://www.amnesty.org/en/latest/news/2025/10/tiktok-steering-children-towards-depressive-and-suicidal-content/) in France found that TikTok's algorithm draws children who show interest in mental health topics into spirals of content romanticizing self-harm and suicide.

The EU's action reflects a growing political consensus in Europe that addictive platform design is not a side effect but a core business strategy — and that regulation must target the business model itself, not just the content it amplifies.

## What Parents Can Do Right Now

While legislation and court decisions are catching up, parents remain the first line of defense. Here are five practical steps:

1. **Review privacy and safety settings** on every platform your children use. Many services have begun rolling out enhanced parental controls in response to regulatory pressure.

2. **Talk to your children** about how these platforms are designed to keep them scrolling. Understanding the mechanics of infinite scroll and variable rewards helps young people recognize when they are being manipulated.

3. **Use content filtering tools** that block inappropriate content at the network level. Solutions like VPN-based content filtering can protect every device in your household without requiring app-by-app configuration.

4. **Set clear screen time boundaries** and enforce them consistently. Research shows that the risk of mental health harm increases significantly after 3 hours of daily use.

5. **Watch for signs of dependency**: irritability when unable to access the phone, loss of interest in offline activities, disrupted sleep, and declining school performance are all warning signs.

## The Road Ahead

2026 marks a fundamental shift in how society treats social media addiction among children. For the first time, courts are holding platforms financially liable for addictive design. Regulators in Europe are treating that design as a legal violation. And the scientific consensus — from the Surgeon General to the World Happiness Report — is clear: these platforms are causing measurable harm to young people at a population level.

The era of treating addictive design as a neutral product feature is ending. What comes next will depend on continued legal pressure, stronger regulation, and informed parenting. Technology created this problem. Accountability, transparency, and engaged families can help solve it.

**Related reading:** See how [countries around the world are responding with new child protection laws](/en/child-protection-laws-2026-global-overview/), and how [France is banning social media for children under 15](/en/france-social-media-ban-under-15/).

{{< faq >}}
Is social media actually addictive, or is that an exaggeration?
Research published in peer-reviewed journals including JAMA Psychiatry and studies from institutions like Weill Cornell Medicine show that problematic social media use shares key features with behavioral addictions: cravings, withdrawal symptoms, loss of control, and continued use despite negative consequences. The U.S. Surgeon General has formally warned about the risk of harm to adolescents. While not every user becomes dependent, 47% of teenagers report feeling addicted.
~~~
Which platforms are considered the most addictive for children?
TikTok, Instagram, Snapchat, and YouTube are most frequently cited in research and legal proceedings. TikTok in particular has faced regulatory action from the EU specifically for its combination of infinite scroll, autoplay, and personalized recommendations. The LA trial in 2026 resulted in findings against Meta (Instagram, Facebook) and Google (YouTube).
~~~
Can parental controls prevent social media addiction?
Parental controls can help limit exposure, especially for younger children. However, a 2026 Meta-sponsored study found that parental controls are largely ineffective once dependency is already established. Experts recommend combining technical controls with open conversations about how platforms are designed and setting clear boundaries before heavy use begins.
~~~
What is the EU doing about addictive social media design?
The European Commission has used the Digital Services Act (DSA) to directly target addictive platform design. In February 2026, TikTok received a preliminary finding of violation specifically for its addictive features — the first time the EU treated design patterns like infinite scroll and autoplay as systemic risks. Potential fines can reach 6% of a platform's global turnover.
~~~
How much screen time is too much for children?
Research published in JAMA Psychiatry found that using social media for 3 or more hours per day is associated with significantly higher rates of anxiety and depression in adolescents. The U.S. Surgeon General and the American Psychological Association both recommend that parents set clear limits and monitor usage patterns, particularly around sleep time.
{{< /faq >}}

---

*This article reflects the state of litigation, regulation, and research as of April 2026. For background on child protection laws worldwide, see our [global overview](/en/child-protection-laws-2026-global-overview/).*
