Digest: WPP Hits Back at Whistleblower Suit; Meta Strips Advertisers of Placement Exclusion Controls; Paramount, California Hold Preliminary Warner Bros Talks

Meta agreed to an $18bn settlement with 29 US states over claims its platforms harmed children. Despite the large sum, Meta's stock rose, as the payment is manageable over 10 years. The settlement includes usage restrictions for young users but no admission of liability. Critics argue the deal does not address core issues like the recommendation algorithm or global impact.

Meta (META) is facing a trial in California, with states seeking up to $1.4 trillion in penalties and changes to Facebook and Instagram. The states allege Meta's business model harms users, while Meta argues it enforces age limits. A judge will decide the case, with a ruling expected in October. Meta previously lost a similar case in New Mexico, facing a $942 million fine.

Meta Platforms (META) is in settlement talks with states over a lawsuit alleging Facebook and Instagram were designed to be addictive to children. The trial involves 29 states accusing Meta of violating consumer protection and children's privacy laws. Meta denies the claims, stating social media addiction is not a recognized disorder. META shares closed at $570.05 on Tuesday, up 1.97%.

Sandhya Devanathan, Meta's VP for India and Southeast Asia, is joining OpenAI as its senior leader for Southeast Asia and Australia. She will oversee consumer growth, enterprise adoption, partnerships, and regulatory engagement. Devanathan's experience in navigating local markets and regulations is seen as valuable for OpenAI's expansion in the region, which includes over 600 million people with diverse markets and regulatory environments. OpenAI has also recently hired other regional executives

Salesforce CEO Marc Benioff dismissed AI threats to SaaS, citing Q2 growth in AI products and CRM. Zoom reported 4.9% revenue growth, highlighting demand for AI-powered CX platforms. Google acquired Spirit Airlines' data for $10M to train AI models. Meta agreed to an $18B settlement, impacting teen usage and social CX.

U.S. and Iran tensions persist, with Strait of Hormuz partially closed, yet oil prices remain below feared levels. U.S.-Canada trade tensions escalate, impacting $20B in goods. Nvidia's strong earnings and AI investments boost its stock, while Meta settles lawsuits for $18B. Fed's PCE inflation data exceeds expectations, raising bond yields ahead of Jackson Hole symposium.