Meta Platforms has denied allegations made by a coalition of U.S. states that it deliberately aimed to create addiction among young users of its Facebook and Instagram platforms for financial gain. The trial, which commenced on Tuesday, has the potential to reshape some of the most widely used apps globally.
A bipartisan group of 29 U.S. states is taking legal action against Meta, seeking potentially substantial financial penalties and demanding alterations to Meta’s business practices. Lead states including California, Colorado, Kentucky, and New Jersey have accused Meta of intentionally designing Facebook and Instagram to engage young users excessively, leading to mental health issues and deceptive safety assurances. All 29 states have accused Meta of breaching federal laws by mishandling children’s personal data.
The trial taking place in Oakland, Calif., federal court is considered a significant legal examination of social media’s impact on young users. Meta and other social media companies such as Snap, TikTok’s parent company ByteDance, and YouTube’s parent company Alphabet are facing numerous lawsuits from states, municipalities, school districts, 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, collect their data, and conceal the truth from the public. She emphasized that this approach was especially effective with children, suggesting that Meta required children to reassure their guardians of their safety.
Meta’s legal representative, Paul Schmidt, acknowledged that some social media users encounter challenges but argued that there is no definitive link between adolescents’ social media usage and well-being issues. Schmidt highlighted Meta’s commitment, led by Mark Zuckerberg, the company’s co-founder and CEO, to enhancing services rather than endangering users.
The trial jury is anticipated to provide an advisory verdict, which the U.S. District Judge Yvonne Gonzalez Rogers will consider in determining Meta’s accountability. If Meta is found liable, civil penalties and adjustments to Facebook and Instagram could be imposed. Meta has warned that penalties could reach up to $1.4 trillion US, nearly matching the company’s market value based in Menlo Park, California.
The attorneys general suggested that the penalties could be around $200 billion US, equivalent to approximately three years of Meta’s after-tax profits. California, Colorado, Kentucky, and New Jersey are advocating for reforms to Facebook and Instagram, such as removing features like likes and infinite scrolling, implementing time restrictions for younger users, and enforcing measures to keep children under 13 off the platforms.
Following the conclusion of opening arguments, the trial’s first witness, former Meta safety engineer Arturo Bejar, began testifying. Bejar has previously criticized Meta for ineffective child safety measures and testified against the company in four trials. Despite Meta’s attempts to prevent his testimony, Judge Rogers rejected the company’s motion, labeling it as unlikely to succeed.
Bejar informed the jury that Meta’s approach was characterized by a “move fast and break things” mentality, with little concern for child safety measures. He highlighted that safety considerations were often overlooked during the launch of products like Reels short-form videos.
The trial is set to last six weeks with anticipated testimonies from Zuckerberg and Instagram head Adam Mosseri. Throughout the trial, Meta’s shares experienced a decline, closing down by 4.4% at $543.67 US.
Critics of Meta gathered outside the courthouse as the trial commenced, including individuals like Mary Rodee, who shared a personal tragedy involving her son’s negative experience on Facebook. The lawsuit, initiated in 2023 following whistleblower Frances Haugen’s revelations, has drawn attention to social media platforms’ impact on young users and their mental health.