Horizon Worlds remains active as Meta reconsiders VR plans

Meta has reversed its earlier decision to discontinue virtual reality support for Horizon Worlds, allowing the platform to remain available on VR headsets despite previous plans to prioritise mobile and web access.

The decision follows an internal reassessment of user engagement trends, which indicate limited adoption of VR-based social platforms.

While Horizon Worlds was once positioned as central to the company’s metaverse ambitions, demand has remained relatively low, raising questions about the long-term viability of immersive social environments.

Financial pressures also continue to shape strategy.

Meta’s Reality Labs division has recorded substantial losses since 2021, reflecting high investment in virtual and augmented reality technologies without corresponding commercial returns.

Industry data further suggests declining headset sales, reinforcing uncertainty around VR as a mainstream consumer platform.

In contrast, mobile usage of Horizon Worlds is growing faster. Increasing downloads point to broader accessibility and improved product-market alignment, though revenue generation remains limited.

As a result, Meta is prioritising mobile development instead of fully abandoning VR, maintaining a dual approach while seeking more sustainable engagement models.

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Meta data processing ruled unlawful in Germany

A Berlin court has ruled that Meta unlawfully processed personal data through its Facebook platform, including information belonging to non-users. Judges found the ‘Find Friends’ feature lacked a valid legal basis for handling third-party data.

The court determined that Meta acted as a data controller and could not rely on consent, contract or legitimate interests to justify the processing. Non-users had no reasonable expectation that their data would be collected or stored.

The German judges also ruled that personalised advertising based on platform data breached GDPR rules. The processing was not considered necessary for providing a social media service and lacked a lawful basis.

However, the court accepted that sensitive personal data entered by users could be processed with explicit consent under the GDPR. The ruling is under appeal and may shape future enforcement of the EU data protection law.

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Meta’s metaverse collapses as Horizon Worlds shuts down on Quest

Meta will shut down Horizon Worlds on its Quest headsets, ending its flagship virtual reality (VR) platform and marking a clear retreat from its metaverse ambitions. The app will be removed from the Quest store on 31 March and discontinued in VR by 15 June, continuing only as a mobile service.

Horizon Worlds, launched in 2021, was central to Meta’s rebranding from Facebook and its vision of a fully immersive virtual environment. Despite billions in investment and high-profile partnerships, the platform failed to attract a large user base and struggled with design limitations and weak engagement.

Reality Labs, the division behind the metaverse push, has accumulated nearly $80 billion in losses since 2020, including more than $6 billion in a single quarter. Recent layoffs affecting around 10 percent of the VR workforce, along with the shutdown of related projects, underscore a broader pullback.

Competition and shifting priorities have accelerated the decline. Rival platforms such as VRChat maintained stronger communities, while Meta increasingly redirected resources toward AI and hardware, including its Ray-Ban smart glasses.

Although Meta says it remains committed to VR, the closure of Horizon Worlds signals a strategic reset. The company is repositioning its future around AI-driven products, marking a decisive shift away from its earlier metaverse vision.

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US senators question Meta facial recognition in smart glasses

Three Democratic senators have raised concerns about Meta’s reported exploration of facial recognition in its smart glasses, warning that it could normalise public surveillance. In a letter to CEO Mark Zuckerberg, Senators Edward Markey, Ron Wyden, and Jeff Merkley asked about consent, biometric data, and the risks of misuse.

The lawmakers said the proposed feature ‘risks normalising mass surveillance at a moment when the federal government is using similar tools to intimidate protesters and chill speech. Although facial recognition may offer real benefits for blind and visually impaired users, Meta’s history of failing to protect user privacy raises serious questions about its plan to deploy this technology in its smart glasses.’

‘Americans do not consent to biometric data collection simply by walking down a public street, entering a café, or standing in a crowd,’ the senators added. ‘Yet, the deployment of this technology would appear to do exactly that – subjecting countless individuals to covert identification without notice, without consent, and without any meaningful opportunity to opt out.’ They warned that such practices would erode longstanding expectations of privacy in public spaces, effectively eliminating public anonymity.’

Concerns grew after reports of US Border Patrol and ICE agents using Meta smart glasses. While there is no evidence of facial recognition use, senators argue that adding identification tools to eyewear could expand undetectable surveillance. The letter questions if Meta might link facial data with information from its platforms, enabling real-time identification tied to profiles. Lawmakers warn that this could increase the risks of harassment and targeting.

Meta had previously discontinued facial recognition on Facebook in 2021, citing societal concerns. The senators argue that reintroducing similar technology in wearable devices suggests a shift rather than a retreat. ‘Five years later, Meta appears less worried about those societal concerns and is reportedly planning to deploy facial recognition technology in one of the most dangerous possible settings,’ they wrote.

‘Moreover,’ they continued, ‘Meta is apparently aware of the risks with this technology,’ noting that ‘an internal memo recommended launching the product ‘during a dynamic political environment where many civil society groups that we would expect to attack us would have their resources focused on other concerns.’

‘In other words,’ the senators added, ‘Meta appears to recognise the serious privacy and civil liberties risks of facial recognition but thinks it can avoid attention by slipping the once-abandoned, ethically fraught product back onto the market while the world is distracted by the Trump administration’s daily chaos.’

The senators have asked Meta to clarify how it would obtain consent from both users and bystanders, how long it would retain biometric data, whether it would use it to train AI models, and whether it could share it with law enforcement, including the Department of Homeland Security. The company has been given until 6 April to respond.

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Meta removes encrypted messaging from Instagram DMs

Meta will discontinue end-to-end encryption for Instagram direct messages starting in May 2026. The company said the feature saw limited use among Instagram users.

Users with encrypted chats will receive instructions on how to download messages or media before the feature ends. Meta confirmed the change through updates to its support pages and in-app notifications.

The decision comes amid ongoing debate about encryption and online safety on major social platforms. Critics argue that encrypted messaging can make it harder to detect harmful activity involving minors.

Meta said users seeking encrypted communication can continue using WhatsApp or Messenger. The company maintains end-to-end encryption for messaging services outside Instagram.

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Google launches Project Genie allowing users to create interactive AI-generated worlds

Google has launched Project Genie, an experimental prototype that allows users to create and explore interactive AI-generated worlds. The web application, powered by Genie 3, Nano Banana Pro, and Gemini, is rolling out to Google AI Ultra subscribers in the US aged 18 and over.

Genie 3 represents a world model that simulates environmental dynamics and predicts how actions affect them in real time. Unlike static 3D snapshots, the technology generates paths in real time as users move and interact, simulating physics for dynamic environments.

Project Genie centres on three core capabilities: world sketching, exploration, and remixing. Users can prompt with text and images to create environments, define character perspectives, and preview worlds before entering.

As users navigate, the system generates paths in real time based on their actions.

The experimental prototype has known limitations, including generation restrictions to 60 seconds, potential deviations from prompts or real-world physics, and occasional character controllability issues.

Google emphasises responsible development as part of its mission to build AI that benefits humanity, with ongoing improvements planned based on user feedback.

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Meta boosts AI spending plans for 2026

Meta plans to nearly double its AI investment in 2026, according to its latest earnings report. Spending is expected to reach between $115bn and $135bn as the company expands large-scale infrastructure.

Mark Zuckerberg said the investment will focus on data centres needed to train advanced AI models. The strategy is designed to support long-term AI development across Meta’s platforms in the US.

Zuckerberg described 2026 as a pivotal year for AI, with Meta working on multiple products rather than a single launch. Testing is reportedly underway on new models intended to succeed the Llama family in the US.

Meta said building proprietary AI models allows greater control over future products. The company positioned AI as a tool for personal empowerment, setting its approach apart from more centralised automation strategies in the US.

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Italy orders Meta to lift WhatsApp AI restrictions

Italy’s competition authority has ordered Meta to halt restrictions limiting rival AI chatbots on WhatsApp. Regulators say the measures may distort competition as Meta integrates its own AI services.

The Italian watchdog argues Meta’s conduct risks restricting market access and slowing technical development. Officials warned that continued enforcement could cause lasting harm to competition and consumer choice.

Meta rejected the ruling and confirmed plans to appeal, calling the decision unfounded. The company stated that WhatsApp Business was never intended to serve as a distribution platform for AI services.

The case forms part of a broader European push to scrutinise dominant tech firms. Regulators are increasingly focused on the integration of AI across platforms with entrenched market power.

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Meta restricts Congress AI videos in India

Meta has restricted access in India to two AI-generated videos posted by the Congress party. The clips depicted Prime Minister Narendra Modi alongside Gautam Adani, Chairman of the Adani Group.

The company stated that the content did not violate its community standards. Action followed takedown notices issued by Delhi Police under India’s information technology laws.

Meta warned that ignoring the orders could jeopardise safe harbour protections. Loss of those protections would expose platforms to direct legal liability.

The case highlights growing scrutiny of political AI content in India. Recent rule changes have tightened procedures for ordering online takedowns.

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Teen chatbot use surges across the US

Nearly a third of US teenagers engage with AI chatbots each day, according to new Pew data. Researchers say nearly 70% have tried a chatbot, reflecting growing dependence on digital tools during schoolwork and leisure time. Concerns remain over exposure to mature content and possible mental health harms.

Pew surveyed almost 1,500 US teens aged 13 to 17, finding broadly similar usage patterns across gender and income. Older teens reported higher engagement, while Black and Hispanic teens showed slightly greater adoption than White peers.

Experts warn that frequent chatbot use may hinder development or encourage cheating in academic settings. Safety groups have urged parents to limit access to companion-like AI tools, citing risks posed by romantic or intimate interactions with minors.

Companies are now rolling out safeguards in response to public scrutiny and legal pressure. OpenAI and Character.AI have tightened controls, while Meta says it has adjusted policies following reports of inappropriate exchanges.

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