Meta Platforms refuted allegations made by U.S. states that it deliberately aimed to create dependency among children using its Facebook and Instagram platforms to generate profits as a pivotal trial began on Tuesday. A bipartisan coalition of 29 U.S. states filed a lawsuit against Meta, seeking potentially vast financial penalties and alterations to Meta’s operational practices.
Lead states including California, Colorado, Kentucky, and New Jersey accused Meta of engineering Facebook and Instagram to engage young users, leading to heightened levels of stress, depression, and even suicidal tendencies, while also deceiving consumers about the safety of the platforms. All 29 states accused Meta of breaching federal laws through improper collection and utilization of children’s personal data.
The trial in the federal court in Oakland, California, has been deemed a significant legal examination of social media’s impact on young users, with Meta and other social media giants like Snap, TikTok’s parent company ByteDance, and YouTube’s parent company Alphabet facing numerous lawsuits from states, municipalities, school districts, and individuals over the purported harm inflicted on young users by their products.
During the trial’s opening statements, Megan O’Neill, a deputy attorney general for California, asserted that Meta’s business strategy focused on captivating users, retaining them for extended periods, mining their data, and concealing the truth from the public. O’Neill highlighted that this strategy was particularly effective with children, emphasizing Meta’s necessity for young users and the importance of reassuring their guardians about their safety.
Meta’s legal representative, Paul Schmidt, acknowledged the challenges faced by some social media users but cited research showing no definitive link between adolescents’ social media usage and their well-being. He emphasized that Meta’s co-founder and CEO, Mark Zuckerberg, shared the company’s commitment to enhancing its services rather than endangering users.
The trial jury is anticipated to provide an advisory verdict that the U.S. District Judge Yvonne Gonzalez Rogers will consider in determining Meta’s liability. If Meta is found liable, civil penalties could be imposed, and alterations to Facebook and Instagram may be mandated. Meta has disclosed the potential for penalties as high as $1.4 trillion US, nearly equivalent to the company’s market value based in Menlo Park, California.
Attorneys general at a recent hearing suggested penalties could be around $200 billion US, approximately three years of Meta’s after-tax profits. The four lead states also seek reforms for Facebook and Instagram, including eliminating features like likes and infinite scroll, setting time restrictions for younger users, and implementing measures to prevent children under 13 from accessing the platforms.
Following the conclusion of opening arguments, Arturo Bejar, a former Meta safety engineer, testified as the states’ initial witness. Bejar alleged that Meta was aware of the ineffectiveness of its child safety tools and criticized the company’s indifferent approach to monitoring children under 13 online.
Zuckerberg and Instagram chief Adam Mosseri are expected to provide testimony during the six-week trial. Meta’s stock prices experienced a decline on the trial’s commencement day, closing down 4.4% at $543.67 US.
Critics of Meta gathered outside the courthouse as the trial began, with individuals like Mary Rodee, whose son’s death was connected to social media usage, expressing their concerns about the company’s practices. The lawsuit, initiated in 2023, followed revelations from whistleblower Frances Haugen regarding Meta’s knowledge of the risks posed by its products to children. In a separate case, Meta and Google were directed to pay $6 million US to a woman who claimed addiction to Instagram and YouTube as a child.
Recently, a New Mexico court ordered Meta to pay $567 million US to address teenagers’ mental health issues, while Tennessee’s attorney general is pursuing a similar lawsuit against Meta in Nashville, focusing on concerns related to Instagram.
