ANALYSIS: Meta Suits Could Reshape Industry, Not Just Profits

The impact on the tobacco industry directly following the 1998 Master Settlement Agreement was primarily a financial one. To resolve the litany of state lawsuits, payments were imposed on the tobacco industry that were tied to future sales. So, the industry raised prices to make up the difference. The underlying product and business model remained relatively unchanged; a cigarette in 2026 is nearly identical to a cigarette in 1995.

Most social media platforms don’t have a price lever they can pull to make up for losses in court. Major platforms are free to use and generate revenue through advertisements and ...