Meta Platforms has denied allegations made by U.S. states that it deliberately aimed to engage children on its Facebook and Instagram platforms to generate profits as a trial commences that could potentially impact some of the most widely-used apps globally. A bipartisan coalition of 29 U.S. states is taking legal action against Meta, seeking significant financial penalties and alterations to Meta’s business practices.
Lead states such as California, Colorado, Kentucky, and New Jersey have accused Meta of creating Facebook and Instagram in a manner that entices young users, leading to increased levels of stress, depression, and, in some cases, suicide. Additionally, all 29 states have accused Meta of breaching federal laws by improperly gathering and utilizing children’s personal data.
The trial, taking place in a federal court in Oakland, California, is considered a major legal examination of the impact of social media on young users. Meta, along with other social media giants like Snap, TikTok’s parent company ByteDance, and YouTube’s parent company Alphabet, are facing numerous lawsuits from states, localities, educational institutions, and individuals questioning whether their platforms harm young users.
During the trial’s opening statements, Megan O’Neill, a deputy attorney general for California, asserted that Meta’s primary business strategy was to engage users, retain their attention for as long as possible, gather their data, and conceal the truth from the public. O’Neill emphasized that this strategy was particularly effective with children, stating that Meta relied on children and needed to assure their caregivers of the children’s safety.
Meta’s legal representative, Paul Schmidt, acknowledged that some social media users encounter difficulties but argued that research has not definitively linked adolescents’ social media usage to diminished well-being. He also highlighted that Meta’s co-founder and CEO, Mark Zuckerberg, shared the company’s commitment to enhancing its services rather than making them harmful.
The trial jury is expected to provide an advisory verdict, which the presiding U.S. District Judge Yvonne Gonzalez Rogers will consider while determining Meta’s liability. If Meta is found liable, Rogers could impose financial penalties and mandate adjustments to Facebook and Instagram. Meta has warned that penalties could reach up to $1.4 trillion, nearly equivalent to the company’s market value in Menlo Park, California.
State attorneys general suggested that the penalties could be around $200 billion, roughly three years of Meta’s after-tax profits. Additionally, California, Colorado, Kentucky, and New Jersey are advocating for significant changes to Facebook and Instagram, including eliminating features like likes and infinite scrolling, establishing time limits for younger users, and enforcing stricter regulations to prevent children under 13 from using the platforms.
After the conclusion of opening arguments, Arturo Bejar, a former safety engineer at Meta, took the stand as the first witness for the states. Bejar alleged that Meta was aware that its safety measures for children were ineffective and criticized the company for adopting a lax approach to monitoring the online presence of children under 13. He highlighted Meta’s mantra of “move fast and break things” and its neglect of safety considerations during product launches.
As the trial progresses, testimonies from high-profile figures like Mark Zuckerberg and Instagram’s Adam Mosseri are anticipated. The trial is scheduled to span six weeks, and Meta’s stock experienced a decline on the first day of the trial.
Critics of Meta gathered outside the court as the trial commenced, expressing concerns about the impact of social media on children. One such critic, Mary Rodee, whose son died by suicide after encountering online predators on Facebook, emphasized the need for accountability in protecting children from online harms.
The lawsuit against Meta was initiated in 2023 following revelations by whistleblower Frances Haugen regarding Meta’s knowledge of the risks posed by its products to children. Recent legal actions, such as the $6 million verdict against Meta and Google in Los Angeles, and the $567 million order in New Mexico to address mental health issues among teenagers, have underscored the growing scrutiny on social media platforms. Tennessee’s lawsuit against Meta on similar grounds is also proceeding in Nashville.