Meta Platforms has refuted allegations from U.S. states that it deliberately aimed to make children addicted to its Facebook and Instagram services for financial gain as a trial commenced on Tuesday. A coalition of 29 U.S. states is taking legal action against Meta, seeking potentially substantial financial penalties and alterations to the company’s operational practices.
The lead states, including California, Colorado, Kentucky, and New Jersey, have accused Meta of intentionally designing Facebook and Instagram to engage young users, leading to mental health issues such as anxiety, depression, and even suicide, while also deceiving consumers about the safety of the platforms. All 29 states have accused Meta of breaching federal regulations by inappropriately collecting and utilizing children’s personal information.
The trial, taking place in Oakland, California, is considered a significant legal examination of social media’s impact 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 legal challenges from states, localities, educational institutions, and individuals over concerns about the potential harm their products pose to young users.
During the trial’s opening statements, Megan O’Neill, a deputy attorney general for California, asserted that Meta’s business strategy focused on engaging users, retaining them, extracting their data, and concealing the truth from the public. O’Neill emphasized that this strategy particularly targeted children, with Meta prioritizing the need for young users and assuring guardians of their safety.
Meta’s legal representative, Paul Schmidt, acknowledged the challenges faced by some social media users but cited research that did not establish a direct connection between adolescents’ social media usage and their well-being. Schmidt highlighted Meta’s commitment, led by co-founder and CEO Mark Zuckerberg, to enhancing services rather than jeopardizing user safety.
The trial jury is expected to provide 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, civil penalties could be imposed, and alterations to Facebook and Instagram may be mandated. Meta has indicated that penalties could reach up to $1.4 trillion, aligning closely with the company’s market valuation in Menlo Park, California.
State attorneys general have suggested that the penalty amount could be around $200 billion, roughly equivalent to Meta’s after-tax profits over three years. California, Colorado, Kentucky, and New Jersey are pushing for significant changes to Facebook and Instagram, including removing features like likes and the infinite scroll, imposing time restrictions for younger users, and enforcing measures to prevent children under 13 from accessing the platforms.
The trial’s first witness, former Meta safety engineer Arturo Bejar, testified on the company’s awareness that its child safety tools were ineffective. Bejar criticized Meta’s approach of overlooking safety considerations in product deployment, citing instances like Reels short-form videos being introduced without adequate safety measures.
Anticipated testimonies from Mark Zuckerberg and Instagram head Adam Mosseri are on the horizon as the trial unfolds over the next six weeks. Meta’s stock prices experienced a decline during the trial proceedings, closing 4.4% lower at $543.67.
While critics of Meta voiced their concerns outside the courthouse, emphasizing the detrimental impacts of social media on youth, the legal battle initiated in 2023 gained momentum following whistleblower Frances Haugen’s revelations about Meta’s knowledge of product risks for children. Recent court rulings, including the $567 million fine imposed by a New Mexico court, underscore the growing legal challenges confronting Meta over its platforms’ impact on young users.
