Meta Platforms denied allegations from U.S. states that it deliberately aimed to addict children to its Facebook and Instagram platforms for financial gain as a trial with potential implications for some of the most popular apps commenced on Tuesday. A bipartisan coalition of 29 U.S. states is suing Meta, seeking substantial financial penalties and alterations to Meta’s business practices. Lead states, including California, Colorado, Kentucky, and New Jersey, accused Meta of designing Facebook and Instagram to ensnare young users, leading to mental health issues and deceptive safety claims. All 29 states accused Meta of breaching federal laws by mishandling children’s personal data.
The trial in Oakland, California, federal court, which began with opening statements on Tuesday, is deemed a significant legal examination of social media’s impact on young users. Meta, alongside other social media giants like Snap, TikTok’s ByteDance, and YouTube’s Alphabet, faces numerous lawsuits from states, municipalities, schools, and individuals concerning potential harm to young users.
During the trial, Megan O’Neill, a deputy attorney general for California, argued that Meta’s business strategy was centered on engaging and retaining users, extracting their data, and concealing the truth from the public. O’Neill emphasized the company’s focus on attracting and ensuring the safety of young users.
Meta’s legal representative, Paul Schmidt, acknowledged that some social media users encounter challenges but cited research indicating no clear link between adolescents’ social media usage and overall well-being. Schmidt highlighted Meta’s commitment, led by CEO Mark Zuckerberg, to enhance services without compromising user safety.
The jury is expected to deliver a non-binding advisory verdict, which Judge Yvonne Gonzalez Rogers will consider when determining Meta’s liability. If found liable, Meta could face civil penalties and mandated alterations to Facebook and Instagram. Meta has warned of potential penalties reaching $1.4 trillion, nearly equivalent to the company’s market value in Menlo Park, California.
The states’ attorneys general suggested penalties could amount to around $200 billion, approximately three years of Meta’s post-tax profits. Additionally, California, Colorado, Kentucky, and New Jersey are pushing for reforms to Facebook and Instagram, such as removing features like likes and infinite scrolling, setting usage limits for younger individuals, and implementing stricter controls to prevent children under 13 from accessing the platforms.
The trial’s first witness, former Meta safety engineer Arturo Bejar, testified regarding the company’s allegedly ineffective child safety measures. Bejar criticized Meta’s approach to monitoring children under 13 online, highlighting a culture of prioritizing rapid product deployment over safety considerations.
Critics of Meta gathered outside the courthouse as the trial unfolded. Among them was Mary Rodee, who shared her son’s tragic experience involving social media and emphasized the need for corporate accountability in safeguarding children. The trial, scheduled to span six weeks, is anticipated to feature testimonies from Zuckerberg and Instagram head Adam Mosseri.
In trading on Tuesday, Meta’s shares experienced a decline, closing at $543.67 US. The lawsuit against Meta was initiated in 2023, following whistleblower Frances Haugen’s revelations about the company’s alleged negligence in ensuring child safety for profit. Previous legal actions against Meta, including a recent ruling in New Mexico requiring a substantial payment to address mental health concerns, underscore the ongoing scrutiny faced by the tech giant.