Big Tech's Legal Battles: What to Watch for in 2025

As we approach 2025, the legal landscape for Big Tech companies is set to be shaped by ongoing and emerging mass tort litigations, as well as antitrust enforcement efforts from various regulatory bodies. Here's what investors should keep an eye on in the coming year.

1. PFAS Litigation: Cases against major chemical producers regarding Per- and polyfluoroalkyl substances (PFAS), commonly known as "forever chemicals," are escalating. PFAS are synthetic chemicals known for their persistence in the environment and human body, raising significant health concerns. These substances, prevalent in many consumer goods and industrial applications, have led to settlements surpassing $11 billion with U.S. water systems alone. However, thousands of personal injury claims continue to pile up, primarily centered around cancer cases linked to exposure through firefighting foam. This litigation is concentrated in South Carolina's federal courts, where pivotal bellwether trials are slated for next year. Beyond these, emerging claims may include exposure instances through consumer product packaging, marking a possible expansion in the scope of PFAS litigation. Investors should monitor the progress of these cases, as they could have significant financial implications for the companies involved.
2. Social Media Addiction and Mental Health Litigation: Litigation against social media conglomerates like Meta, TikTok's parent company ByteDance, Google, and others, accused of fueling teen addiction and mental health crises, is expected to gain traction in 2025. Schools and families argue that these platforms have forced them to allocate hefty resources to combat these issues, and significant legal milestones are anticipated in the coming year. A California federal judge has scheduled October for the first bellwether trials, potentially setting a precedent for future cases. Investors should keep an eye on these developments, as they could impact the reputation and financial performance of these companies.
3. Glyphosate Litigation: Bayer faces over 50,000 claims that its Roundup weedkiller and its active ingredient glyphosate cause cancer, despite settling previously for approximately $10.9 billion in 2020. The ongoing trials could push the company toward another substantial settlement or propel them to pursue a definitive legal victory, potentially appealing to the U.S. Supreme Court to resolve regulatory preemption matters. Investors should monitor the progress of these cases, as they could have significant financial implications for Bayer.
4. Baby Formula Litigation: Litigation around baby formulas specifically made for preterm infants is gaining attention. Companies like Abbott and Reckitt Benckiser's Mead Johnson have been hit with severe verdicts totaling hundreds of millions due to claims that their products cause necrotizing enterocolitis, a severe bowel condition in infants. Despite some victories, nearly 1,000 cases are still pending, underscoring potential implications for both financial and medical practice realms. Investors should keep an eye on these developments, as they could impact the reputation and financial performance of these companies.
5. Ultra-Processed Foods Litigation: A burgeoning area of litigation concerns the health impacts of "ultra-processed" foods. A groundbreaking case initiated by an 18-year-old from Pennsylvania against twelve major food corporations claims that such foods contributed to his chronic health conditions, including non-alcoholic fatty liver disease and type 2 diabetes. This case could either open the floodgates for similar claims or falter due to the challenges in defining "ultra-processed" foods and pinpointing culpable ingredients. Investors should monitor the progress of this case, as it could have significant implications for the food industry.
6. Antitrust Enforcement: The incoming Trump Administration has announced its enforcement priorities for 2025, which include tenacious Big Tech enforcement. The first Trump Administration was focused on technology companies and sued several, including Meta, which the administration claimed had unlawfully accumulated monopoly power via transactions such as its acquisitions of Instagram and WhatsApp. Expect more cases challenging the dominance of tech companies but with skepticism of breaking up these companies. Investors should keep an eye on these developments, as they could impact the competitive landscape and financial performance of these companies.
7. FTC Rulemaking: The FTC's potential shift in rulemaking under Commissioner Andrew Ferguson could have significant implications for Big Tech's legal landscape in 2025. Commissioner Ferguson has expressed skepticism about the FTC's authority to promulgate rules concerning unfair competition beyond what is anticompetitive under the antitrust laws. This stance is in contrast to outgoing FTC Chair Lina Khan's expanded view of the FTC's authority. As a result, we can expect a potential shift in the FTC's rulemaking approach under Commissioner Ferguson's leadership. Investors should monitor the FTC's rulemaking efforts, as they could impact the regulatory environment for Big Tech companies.
8. HSR Premerger Notification Requirements: The first major changes to the Hart-Scott-Rodino Act (HSR) premerger notification requirements, slated to go into effect on February 10, 2025, will significantly impact Big Tech's mergers and acquisitions. These changes will require parties to disclose significantly more information and documents related to transactions, including more details about deal rationales, the parties, and industries involved. This increased scrutiny and paperwork will likely make the merger process more complicated and burdensome for Big Tech companies. Investors should keep an eye on these developments, as they could impact the ability of these companies to pursue mergers and acquisitions.

In conclusion, 2025 is shaping up to be a pivotal year for Big Tech's legal battles. Investors should closely monitor the progress of these cases and regulatory developments, as they could have significant implications for the financial performance and competitive landscape of these companies. By staying informed and understanding the potential risks and opportunities, investors can make more informed decisions about their portfolios.