Meta faces trillion-dollar lawsuit threat
A major lawsuit has been filed in the US against Meta Platforms. A coalition of 29 states alleges that Facebook and Instagram were intentionally designed to increase social media addiction in children and adolescents, in an attempt to increase advertising revenue. Meta denies the allegations.
Meta is facing a trillion-dollar lawsuit. The lawsuit, filed in federal court in Oakland, California, on August 18, involves 29 states, with the bulk of the lawsuit being brought by California, Colorado, Kentucky and New Jersey.
The plaintiffs accuse Meta of using features on its Facebook and Instagram platforms designed to keep young users on for as long as possible. They say such designs exploit the psychological vulnerabilities of children and adolescents, creating habits that resemble compulsive use of the platforms.
The states also accuse the company of misleading the public about the safety of Facebook and Instagram for young users. In addition, Meta is alleged to have violated the US federal law COPPA, which protects the privacy of children under 13, by collecting and processing personal information from children under the age of 13 without parental consent.
In court, California Deputy Attorney General Megan O'Neill, speaking on behalf of the plaintiffs, argued that Meta used research on the psychology of adolescents to keep their attention longer. According to the plaintiffs, the company's business model is aimed at attracting users to the platform, keeping them as long as possible, collecting their data and thereby increasing advertising revenue. And young users are a long-term and valuable audience for the company.
Former Meta engineer Arturo Bejar also testified in court. According to him, some internal warnings and suggestions related to child safety were not given sufficient attention during the development of the products.
Meta representatives disagree with the states' claims. The company's defense argues that the plaintiffs have not sufficiently proven that users were deliberately misled. Meta has said that over the years it has implemented various security measures on its platforms to protect teenagers. The company also says the states are trying to impose overly broad changes to the way Facebook and Instagram operate and design, and to seek large financial damages.
One of the most interesting aspects of the case is the potential financial penalties. According to Meta’s own calculations, if the court rules in its favor, the theoretical upper limit of the fines could reach $1.4 trillion in some cases. However, that doesn’t mean Meta will necessarily pay that much — the final amount will depend on the court’s findings and the circumstances of the violation.
The states are also seeking changes to the way Meta’s platforms operate, in addition to financial penalties. As a result, the outcome of the lawsuit could affect how some of Facebook and Instagram’s features, especially those aimed at younger users, work.
The trial is expected to last several weeks. Senior executives including Meta founder and CEO Mark Zuckerberg and Instagram CEO Adam Mosseri are expected to testify during the trial.
The case comes at a time when the issue of protecting children and adolescents from the potentially harmful effects of social media is increasingly being debated in the United States and other countries. The court's decision could set an important legal precedent not only for Meta, but also for the responsibility of social media platforms towards young users.