Meta Platforms denied allegations made by a coalition of U.S. states suggesting it purposely aimed to make children addicted to its Facebook and Instagram services for financial gain as a crucial trial commenced on Tuesday. The group of 29 states is suing Meta, seeking significant financial penalties and changes to the company’s business practices.
California, Colorado, Kentucky, and New Jersey, the leading states in the lawsuit, accused Meta of intentionally designing Facebook and Instagram to engage young users, leading to mental health issues and misinforming consumers about the platforms’ safety. The states also accused Meta of breaching federal laws by inappropriately collecting and utilizing children’s personal information.
The ongoing trial in a federal court in Oakland, California, is considered a major legal evaluation of social media’s impact on young users. Meta, along with other social media giants like Snap, TikTok’s parent company ByteDance, and YouTube’s parent company Alphabet, faces multiple lawsuits from various entities and individuals questioning whether their platforms pose harm to young users.
During the trial’s opening statements, California’s deputy attorney general, Megan O’Neill, asserted that Meta’s business strategy was centered on engaging users, gathering their data, and concealing the truth from the public. She emphasized that this strategy was particularly effective with children, highlighting Meta’s need for young users and the obligation to assure their safety.
Meta’s attorney, Paul Schmidt, acknowledged the challenges some social media users face but noted that research has not definitively linked adolescents’ social media use to reduced well-being. He reiterated that Mark Zuckerberg, Meta’s co-founder and CEO, prioritizes enhancing services rather than endangering users.
The presiding U.S. District Judge, Yvonne Gonzalez Rogers, will ultimately determine Meta’s liability based on the jury’s advisory verdict. If Meta is found liable, civil penalties could be imposed, and alterations to Facebook and Instagram might be mandated. Meta has indicated that potential penalties could reach up to $1.4 trillion, nearly equivalent to the company’s market value in Menlo Park, California.
The states involved in the lawsuit have proposed various changes to Facebook and Instagram, including removing features like likes and infinite scrolling, setting time limits for young users, and enforcing stricter regulations to protect children under 13 while online.
The trial also featured the testimony of Arturo Bejar, a former Meta safety engineer, who criticized the company’s approach to child safety tools. Bejar highlighted Meta’s culture of prioritizing rapid deployment over safety considerations, particularly concerning products like Reels short-form videos.
Zuckerberg and Instagram chief Adam Mosseri are anticipated to testify during the trial, which is expected to span six weeks. Meta’s stock prices experienced a decline, closing at $543.67 US.
Outside the courthouse, critics of Meta expressed concerns, with Mary Rodee sharing her personal tragedy involving her son’s suicide linked to his experiences on Facebook. The lawsuit against Meta originated in 2023 following whistleblower Frances Haugen’s revelations about the company’s knowledge of product safety issues for children.
In a separate case, a New Mexico court ordered Meta to pay $567 million to address mental health concerns among teenagers, while Tennessee’s attorney general has initiated a similar lawsuit against Meta, currently undergoing trial in Nashville.