Meta settles a landmark case alleging user harm, the UK Treasury pushes the BoE to support stablecoins, and the energy price cap is set to rise again in October.

Welcome to this week’s Market Pulse, your 5-minute update on key market news and events, with takeaways and insights from the Sidekick Investment Team.

Today, we’re looking at Meta’s landmark $16.7 billion settlement deal, the Bank of England’s new stablecoin mandate, and what October’s energy price cap rise means for UK inflation.

But first, our number of the week…

£260 million

That’s how much Google has agreed to pay to settle a UK class action brought by app developers accusing the tech giant of charging excessive commissions. The deal is the largest settlement to date under the UK’s class action regime for competition claims.

Sidekick Takeaway: Another major UK class action lawsuit against Google is pending, this one by Android phone users. With the EU fining Google $1 billion over the summer, the company’s regulatory costs continue to mount.

Only have a minute to read? Here’s the TL;DR:

• Meta has agreed to pay $16.7 billion to settle a case brought by dozens of US states, which accused the company of deliberately engineering addictive platforms that harmed young users. The settlement could set a precedent for similar cases across the industry.
• The UK Treasury has formally added supporting digital currency innovation to the Bank of England’s remit, a move aimed at accelerating stablecoin adoption. The decision could open the door for sterling-linked tokens to better compete with dollar-based rivals.
• The UK energy price cap will rise 4% in October, pushing household energy costs to their highest level in three years. With inflation already at 2.9% and further cap increases expected, the BoE faces growing pressure ahead of its September rate decision.

It’s important to note that the content of this Market Pulse is based on current public information which we consider to be reliable and accurate. It represents Sidekick’s view only and does not represent investment advice - investors should not take decisions to trade based on this information.

Tapping Out: Meta Settles Landmark Case Alleging User Harm

In a landmark deal, Meta agreed to settle a case filed by dozens of US states for $16.7 billion.

The states accused Meta of deliberately engineering its platforms to be addictive, causing significant harm to young people.

In addition to the payout, the owner of Facebook and Instagram will also change how its platforms operate. These changes include adding time limits for younger users.

The full deal is contingent on rival platforms agreeing to make similar adjustments.

However, Meta’s decision to settle indicates a meaningful shift in how social media giants are treating their regulatory exposure.

Why Meta opted to settle

By settling the case, Meta likely avoided a costly and embarrassing legal battle:

• Previous suits had already uncovered internal documents showing that Meta executives were aware that the company’s platforms harmed young users.
• For Meta, $16.7 billion is a meaningful sum. The figure amounts to about 28% of the firm’s 2025 net income.
• The deal also risks opening the floodgates for similar suits. Thousands of cases against the company are currently pending around the world.

For years, social media giants have been willing to brush off damage claims as misguided, arguing that studies showing harm to young users were flawed.

Meta’s decision to settle is an acknowledgment that damage claims against the firm have real teeth, and could be a sign of what’s to come.

Sidekick Takeaway: While Meta is just one company, the decision to settle could set a precedent across the entire industry. Platforms like Snapchat, TikTok, and YouTube are all under pressure for potentially harming younger users.

Regime Change: UK Treasury Pushes BoE to Support Stablecoins

The UK Treasury has formally added supporting digital currency innovation to the Bank of England’s remit, second only to the bank’s focus on monetary stability.

The move is a sign of the Burnham government’s focus on supporting stablecoins. Lucy Rigby, the City Minister, stated that the new mandate will help ensure ‘that the UK remains a global leader in financial services.’

In recent years, the BoE has been accused of taking an overly cautious approach to stablecoins, with officials floating rules limiting the amount of stablecoins Britons could own.

The Treasury’s decision is effectively a legal order for the BoE to change its stance, and could mark a new era for sterling-linked tokens.

From niche to normalised

Once a niche part of the crypto industry, stablecoins are seeing increased adoption by individuals and businesses:

• Stablecoins processed $33 trillion in transaction volume last year. The tokens are increasingly seen as a low-cost alternative for international transactions.
• Despite this adoption, many central banks have taken a cautious approach, arguing that stablecoins could harm financial stability by drawing assets away from bank deposits.
• Today, stablecoins remain largely dollar-based, with USD tokens accounting for the vast majority of the industry. Sterling-denominated tokens currently have an estimated market cap of about £22 million.

Beyond stablecoins, the BoE’s new remit could see increased governmental support for projects surrounding tokenised collateral and rapid trade settlement.

Sidekick Takeaway: Prior to the Bretton Woods agreement in 1944, the pound was considered the premier currency for international trade. While the pound is unlikely to reclaim that title, supporting stablecoin innovation will help ensure the UK isn’t left behind in a new era of money.

Fuel on the Fire: UK Energy Price Cap to Rise in October

Starting in October, the UK’s energy price cap will rise by 4%, a change set to increase inflationary pressure across the economy.

The increase is linked to higher wholesale energy prices due to the Iran war. Following a double-digit cap increase in July, consumer energy costs have risen to their highest level in three years.

The Burnham government has tried to mitigate energy price pressures, cutting VAT on electricity consumption by households.

But while Energy Secretary Miatta Fahnbulleh acknowledged that households ‘need more help,’ the cost of living in the UK continues to rise.

Beyond the bills

Higher energy costs are already feeding through to the broader economic picture:

• In July, UK inflation hit 2.9%, largely on higher energy bills. That’s well above the BoE’s 2% target.
• Higher petrol prices have also fuelled inflation in recent months. When transportation costs rise, almost every good in the economy can be affected.
• Nonetheless, the BoE is widely expected to hold rates steady at the bank’s September meeting, citing downside risks to growth.

The economic fallout from the Iran war has not been as painful as the post-COVID inflation shock.

But these figures show that it hasn’t been painless, either.

Sidekick Takeaway: In the near term, the Burnham government may seek targeted support to help households weather higher energy prices. But in the long term, this experience should motivate the UK to pursue greater energy independence, preventing households from being squeezed by geopolitical volatility.  

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