Meta Platforms has denied allegations from U.S. states that it deliberately tried to create addiction among children using its Facebook and Instagram platforms to maximize profits as a trial that could impact some of the most widely-used apps worldwide commenced on Tuesday. A bipartisan coalition of 29 U.S. states is taking legal action against Meta, seeking potentially massive financial penalties and alterations to Meta’s business practices.
California, Colorado, Kentucky, and New Jersey, as the lead states, have accused Meta of intentionally designing Facebook and Instagram to engage young users, contributing to mental health issues like anxiety, depression, and even suicide, and providing false information about the platforms’ safety. All 29 states have alleged that Meta violated federal regulations by inappropriately gathering and utilizing children’s personal data.
Legal experts have described the trial in the federal court in Oakland, California, which began with opening statements on Tuesday, as the most significant legal examination to date of the impact of social media on young users. Meta, along with other social media giants such as Snap, TikTok’s parent company ByteDance, and YouTube’s parent company Alphabet, are facing numerous lawsuits from states, local governments, school districts, and individuals over the potential harm inflicted on young users by their platforms.
During the trial, Megan O’Neill, a deputy attorney general for California, informed the jury that Meta’s business strategy was focused on engaging users, retaining them for extended periods, extracting their data, and concealing the truth from the public. She emphasized that this strategy was particularly effective with children, and Meta needed to ensure the safety of young users to appease concerned individuals.
Meta’s attorney, Paul Schmidt, acknowledged that some social media users encounter challenges, but cited research indicating no clear connection between adolescents’ social media usage and their well-being. He asserted that Meta’s co-founder and CEO, Mark Zuckerberg, shared the company’s commitment to enhancing its services rather than making them harmful.
The judge overseeing the case, Yvonne Gonzalez Rogers, is anticipated to receive an advisory verdict from the jurors, which could influence her final decision on Meta’s liability. If Meta is found liable, Rogers could impose monetary penalties and mandate alterations to Facebook and Instagram. Meta has indicated that the penalties could reach up to $1.4 trillion, nearly equivalent to the company’s market value based in Menlo Park, California.
The attorneys general stated during a recent hearing that the penalties could amount to around $200 billion, approximately three years of Meta’s after-tax profits. Moreover, California, Colorado, Kentucky, and New Jersey are advocating for Meta to revamp Facebook and Instagram by eliminating features like likes and infinite scrolling, implementing time limits for younger users, and enforcing restrictions to prevent children under 13 from accessing the platforms.
As the trial proceeded after the opening arguments, Arturo Bejar, a former safety engineer at Meta, testified as the first witness for the states. Bejar asserted that Meta was aware that its safety tools for children were ineffective, revealing the company’s negligent approach to monitoring children under 13 online. Employees at Meta allegedly viewed Instagram as a “drug,” and Bejar disclosed that safety considerations were not prioritized when launching products like Reels short-form videos.
Mark Zuckerberg and Instagram’s chief, Adam Mosseri, are expected to provide testimony during the trial, which is scheduled to span six weeks. Meta’s stock experienced a decline on Tuesday, closing down by 4.4% at $543.67 US.
Critics of Meta gathered outside the courthouse at the trial’s onset, including individuals like Mary Rodee, who shared her tragic experience of losing her son due to the negative impact of social media. The legal battle against Meta began in 2023, following revelations by whistleblower Frances Haugen regarding the company’s knowledge of the risks posed to children by its platforms. In a separate case, a Los Angeles jury directed Meta and Google to pay $6 million US to a woman who claimed addiction to Instagram and YouTube during her childhood.
Furthermore, a New Mexico court recently ordered Meta to pay $567 million US to address mental health issues among teenagers linked to its platforms. Tennessee’s attorney general is pursuing a similar lawsuit against Meta, raising comparable concerns regarding Instagram in a separate trial in Nashville.