Meta Platforms is fighting a landmark US trial that could expose the company to potentially hundreds of billions of dollars in penalties and force major changes to Facebook and Instagram after 29 states accused it of deliberately designing the platforms to keep children hooked at the expense of their wellbeing.
The six-week trial began on Tuesday in federal court in Oakland, California, in what is being closely watched as one of the biggest legal tests yet of the impact of social media on young users.
Four lead states — California, Colorado, Kentucky and New Jersey — allege that Meta engineered Facebook and Instagram to maximise young users’ engagement while contributing to anxiety, depression and, in some cases, suicide. The states also accuse the company of misleading parents and the public about the safety of its platforms, according to foreign agencies.
Notably, Meta is also facing intense scrutiny from India over content on its platforms, including presence of child sexual abuse material in Instagram. The government has also made it clear to the social media giant that “safe-harbour protection” will not be available to individuals or persons involved in CSAM-related violations.
Opening the case, California Deputy Attorney General Megan O’Neill told the eight-member jury that Meta’s business strategy was to “hook the users, hold them for as long as they can, harvest their data, and then hide the truth from the public”.
Meta strongly rejects the allegations. Company lawyer Paul Schmidt acknowledged that some social media users experience difficulties but argued that research does not establish a clear causal link between adolescent social media use and poor wellbeing.
Schmidt also said that Meta CEO and co-founder Mark Zuckerberg was committed to improving the company’s services rather than making them harmful, arguing that Meta ultimately depends on users having a positive experience.
The jury is expected to deliver the verdict, while US District Judge Yvonne Gonzalez Rogers will decide whether Meta is liable and what remedies should be imposed.
If Meta loses, Rogers could levy civil penalties and order changes to the way Facebook and Instagram operate, particularly in relation to younger users.
Meta has warned that potential penalties could reach $1.4 trillion, roughly equivalent to the company’s market value. Attorneys general have argued that the figure could instead be closer to $200 billion — still an amount equivalent to roughly three years of Meta’s after-tax profit.
The case comes as Meta, Snap, TikTok parent ByteDance and YouTube owner Alphabet face thousands of lawsuits from states, municipalities, school districts and individuals alleging that social media products harm children and teenagers.
Notably, a New Mexico state court recently had ordered Meta to pay USD 567 million for harming the mental wellbeing of children through its social media platforms.
