Meta Platforms refuted allegations made by U.S. states that it deliberately aimed to engage children in its Facebook and Instagram services for profit as a trial that has the potential to reshape some of the most widely-used apps globally began on Tuesday. A bipartisan coalition of 29 U.S. states is taking legal action against Meta, seeking significant financial penalties and modifications in Meta’s business practices.
California, Colorado, Kentucky, and New Jersey, the leading states in the lawsuit, accused Meta of designing Facebook and Instagram to captivate young users, leading to increased levels of anxiety, depression, and even suicide, while also deceiving consumers about the safety of the platforms. All 29 states alleged that Meta breached federal law by improperly gathering and utilizing children’s personal information.
The trial taking place in the federal court in Oakland, California, is being hailed as the most substantial legal examination to date on how social media impacts young users. Meta, along with other social media entities such as Snap, TikTok’s parent company ByteDance, and YouTube’s parent company Alphabet, is facing numerous lawsuits from states, municipalities, school districts, and individuals regarding the potential harm their products cause to young users.
During the trial’s opening statements, Megan O’Neill, a deputy attorney general representing California, informed the eight-person jury that Meta’s business strategy revolved around enticing users, retaining them for extended periods, extracting their data, and concealing the truth from the public. O’Neill emphasized that this approach was particularly effective with children, as Meta relied on them and needed to assure those concerned about their well-being that children were safe.
Meta’s legal representative, Paul Schmidt, acknowledged that some social media users encounter challenges, but asserted that research has not definitively established a direct connection between adolescents’ social media usage and their overall well-being. Schmidt also highlighted that Meta’s co-founder and CEO, Mark Zuckerberg, shares the company’s commitment to enhancing its services rather than endangering users.
The presiding U.S. District Judge Yvonne Gonzalez Rogers is expected to consider the jury’s advisory verdict, which may influence the determination of Meta’s liability. If Meta is found liable, Rogers could levy civil penalties and mandate alterations to Facebook and Instagram. Meta has indicated that penalties could reach as high as $1.4 trillion, nearly equivalent to the company’s market value based in Menlo Park, California.
At a recent hearing, attorneys general suggested that the penalty amount could be around $200 billion, approximately three years’ worth of Meta’s after-tax profits. The four lead states also seek Meta to revamp Facebook and Instagram by removing features like likes and infinite scrolling, imposing time limits for younger users, and enforcing measures to prevent children under 13 from accessing the platforms.
As the trial unfolded, former Meta safety engineer Arturo Bejar testified as the states’ initial witness, revealing Meta’s alleged awareness that its safety tools for children were ineffective. Bejar criticized Meta for adopting a “move fast and break things” approach and ignoring the safety implications of deploying products like Reels short-form videos without proper consideration.
The trial is expected to span six weeks, with anticipated testimonies from Zuckerberg and Instagram chief Adam Mosseri. Meta’s stock prices experienced a decline on Tuesday, closing down at $543.67 US, reflecting a 4.4% decrease. O’Neill clarified that the states’ objective is not to dismantle Meta but to highlight how the company exploited children by manipulating their online behavior and interactions on its platforms.
Critics of Meta gathered outside the courthouse as the trial commenced, with individuals like Mary Rodee, who lost her son to suicide linked to social media interactions, expressing their discontent with the company’s practices. The lawsuit against Meta was initiated in 2023 following whistleblower revelations from Frances Haugen, and recent court rulings have imposed significant financial penalties on Meta in response to its platforms’ impact on young users’ mental health.