Meta Stares Down Trillion-Dollar Threat as Landmark Social Media Trial Begins
The states allege Meta used features that drove compulsive use by young users and seek penalties that could reach $193 billion, a lawyer said.
- On Tuesday, Meta Platforms faces a high-stakes trial in Oakland, California, where 29 states allege the company deliberately designed Facebook and Instagram to encourage compulsive use among young users.
- California Attorney-General Rob Bonta, a Democrat, and legal officers from Colorado, Kentucky, and New Jersey lead the coalition, accusing Meta of violating consumer protection laws and collecting data from children under 13.
- Meta faces theoretical penalties up to $1.4 trillion, though legal experts label this figure as "shock value." The company reported a profit decline last month, partly due to $2.4 billion in legal expenses.
- Defending its operations, the company asserted "their limited claims are unsubstantiated and their financial demands are vastly disproportionate." It also argues the trial should wait for the 9th Circuit Court of Appeals to resolve Section 230 protections.
- While Alphabet's Google, Snap, and TikTok are not part of this trial, the case reflects a global backlash against social media companies over concerns that algorithm-driven platforms profit at the expense of young users.
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What is the Meta court case and why is it so important?
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Meta faces on Tuesday the first pleadings of a trial in which several US states claim nearly US$200 billion in penalties.
Meta goes to trial this week, which, if it loses, could change Insta & FB forever
Meta has been hit with a major lawsuit regarding child safety and the addictive nature of its platform. Various states are demanding significant financial compensation and operational reforms, arguing that Meta intentionally crafted features to be addictive for young users. Additionally, they allege that the company collects data from children under the age of thirteen without obtaining proper consent.
Meta stares down trillion-dollar threat as landmark social media trial begins
The attorneys general of 29 states are seeking not only massive financial penalties, but also court orders that could force Meta to change how it operates its platforms.
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