They work hand in hand with governments around the world, that's why they get the tax breaks. In return they hand over details about your opinions, social networks and whereabouts, not to mention facial recognition data via Facebook. They aren't remotely capitalist in any real sense since they have a bad business model.
Most actual studies done on this topic find very little evidence this is true.
It's a run-of-the-mill moral panic. People breathlessly repeating memes about whatever "kids these days" are up to and how horrible it is, as adults have done for thousands of years.
I expect some emotional attacks in response for questioning the big panic of the day, but before you do so please explore:
[1] Effects of reducing social media use are small and inconsistent: https://www.sciencedirect.com/science/article/pii/S266656032...
[2] Belief in "Social media addiction" is wholly explained by media framing and not an actual addiction: https://www.nature.com/articles/s41598-025-27053-2
[3] No causal link between time spent on social media and mental health harm: https://www.theguardian.com/media/2026/jan/14/social-media-t...
[4] The Flawed Evidence Behind Jonathan Haidt's Panic Farming: https://reason.com/2023/03/29/the-statistically-flawed-evide...