Meta Platforms has denied allegations made by U.S. states that it deliberately aimed to create addiction among children using its Facebook and Instagram platforms for financial gain as a pivotal trial began on Tuesday. A bipartisan coalition of 29 U.S. states is taking legal action against Meta, seeking potentially massive financial penalties and revisions to Meta’s business practices.
California, Colorado, Kentucky, and New Jersey, as the lead states, have accused Meta of designing Facebook and Instagram to captivate young users, leading to mental health issues and deceptive safety information. All 29 states have accused Meta of violating federal laws by inappropriately gathering and utilizing children’s personal data.
The trial, taking place in Oakland, California, is considered a significant legal assessment of social media’s impact on young users. Meta, along with other social media giants like Snap, TikTok’s parent company ByteDance, and YouTube’s parent company Alphabet, faces numerous lawsuits from states, municipalities, school districts, and individuals regarding the potential harm caused by their platforms.
During the trial’s opening statements, Megan O’Neill, a California deputy attorney general, asserted that Meta’s strategy was to engage users, collect their data, and conceal the truth from the public. She highlighted the company’s focus on attracting and reassuring users, especially children, about their safety.
Meta’s attorney, Paul Schmidt, acknowledged the challenges some social media users face but emphasized that there is no definitive connection between adolescents’ social media use and their well-being. He stated that Meta aims to enhance its services and prioritize user safety over endangerment.
The trial jury is anticipated to deliver an advisory verdict, which the presiding U.S. District Judge Yvonne Gonzalez Rogers will consider when determining Meta’s liability. If Meta is found liable, civil penalties and alterations to Facebook and Instagram may be imposed. Meta has disclosed that penalties could reach up to $1.4 trillion, nearly matching the company’s market value.
The states’ attorneys general suggested that the penalties could be around $200 billion, equivalent to approximately three years of Meta’s post-tax profits. Furthermore, California, Colorado, Kentucky, and New Jersey seek changes to Facebook and Instagram, including removing features like likes and infinite scroll, imposing time limits for younger users, and implementing safeguards to prevent children under 13 from accessing the platforms.
Following the opening arguments, former Meta safety engineer Arturo Bejar testified as the first witness for the states. Bejar claimed that Meta was aware of the inefficacy of its child safety tools and criticized the company’s approach to monitoring underage users. The testimonies of Meta executives, including Mark Zuckerberg and Adam Mosseri, are anticipated during the six-week trial duration.
The trial spurred a decline in Meta’s stock value, closing down by 4.4% on Tuesday. O’Neill clarified that the states’ objective is not to shut down Meta but to address the exploitation of children through targeted research and data tracking on the platforms.
Critics of Meta gathered outside the court, with individuals like Mary Rodee, who shared her son’s tragic experience linked to social media. The lawsuit, initiated in 2023 following whistleblower Frances Haugen’s revelations, underscores the growing concerns over social media’s impact on young users. Legal actions against Meta are ongoing in various states, highlighting the broader scrutiny facing major tech companies.
