Meta Platforms has refuted allegations made by several U.S. states that it deliberately aimed to create dependency among children on its Facebook and Instagram platforms for financial gain as a trial that could potentially reshape some of the most widely used apps globally commenced on Tuesday. A bipartisan coalition of 29 U.S. states is taking legal action against Meta, seeking significant penalties amounting to possibly tens or hundreds of billions of dollars and demanding alterations to Meta’s business practices.
The lead states in the lawsuit — California, Colorado, Kentucky, and New Jersey — have accused Meta of designing Facebook and Instagram to ensnare young users, leading to increased levels of stress, depression, and even suicide, while also deceiving consumers about the safety of the platforms. All 29 states have accused Meta of breaching federal laws by improperly collecting and utilizing children’s personal information.
This trial, taking place in Oakland, California, federal court, has been identified by experts as the most substantial legal examination to date regarding the impact of social media on young users. Meta, along with other social media entities like Snap, TikTok’s parent company ByteDance, and YouTube’s parent company Alphabet, are facing numerous lawsuits from states, municipalities, school districts, and individuals questioning whether their products are detrimental to young users.
During the trial’s opening statements, Megan O’Neill, a deputy attorney general for California, asserted that Meta’s operational strategy was centered on engaging and retaining users, extracting their data, and concealing the truth from the public. She emphasized that this strategy was particularly effective with children, stating that Meta required the youth demographic and needed to reassure those concerned about children’s safety.
Meta’s legal representative, Paul Schmidt, acknowledged the challenges faced by some social media users but cited research indicating no definitive link between adolescents’ social media usage and their overall well-being. He also highlighted Meta’s commitment, shared by Mark Zuckerberg, co-founder, and CEO, to enhancing services rather than endangering users.
The trial’s progression will see jurors providing an advisory verdict, which the presiding U.S. District Judge Yvonne Gonzalez Rogers will consider in determining Meta’s accountability. If Meta is found liable, Rogers could enforce civil penalties and mandate alterations to the Facebook and Instagram platforms, with potential penalties reaching up to $1.4 trillion, nearly equivalent to Meta’s market value.
The attorneys general have suggested that the penalties could be around $200 billion, approximately three years of Meta’s after-tax profits. Additionally, California, Colorado, Kentucky, and New Jersey are advocating for substantial changes to Facebook and Instagram, including the elimination of features like likes and infinite scrolling, setting time restrictions for younger users, and implementing measures to prevent children under 13 from accessing the platforms.
As the trial progresses, witnesses such as former Meta safety engineer Arturo Bejar are testifying, shedding light on Meta’s alleged awareness of ineffective child safety tools. Bejar criticized Meta’s approach, mentioning phrases like “move fast and break things” and describing the lack of safety considerations in deploying products like Reels short-form videos.
The trial is expected to continue for six weeks, with testimonies from key figures like Mark Zuckerberg and Adam Mosseri, head of Instagram. Meta’s stock experienced a decline during the trial proceedings, closing down by 4.4% at $543.67 US.
Critics of Meta, including individuals who have experienced personal tragedies linked to social media platforms, have voiced their concerns outside the courthouse as the trial unfolds. The legal battle, initiated in 2023 following whistleblower Frances Haugen’s revelations, is garnering significant attention, further fueled by previous court rulings against Meta in cases related to mental health issues among teenagers and addiction concerns.