Meta Platforms is facing its biggest legal test yet over allegations that Facebook and Instagram were designed to keep young users hooked, with the outcome potentially forcing sweeping changes to its platforms.
A federal trial in California begins Wednesday after 29 states joined litigation accusing Meta of illegally collecting and using children's data. Colorado, Kentucky, California and New Jersey are also alleging that the company deliberately designed its platforms to keep young users hooked and misled consumers about their safety.
The seven-week trial will be closely watched because the potential financial consequences are enormous. Meta has estimated that damages could reach $1.4 trillion, nearly matching its roughly $1.5 trillion market value. The states have not publicly disclosed the amount they intend to seek.
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However, the financial penalty is only part of the threat. The states are seeking nationwide changes to Facebook and Instagram, including age restrictions, an end to infinite scrolling and tighter controls on notifications and algorithms.
They also want Meta to delete all algorithms and artificial intelligence models created using children's data. Another proposed change would require Meta's recommendation systems to prioritise young users' well-being over engagement and impose stricter time limits.
Meta has rejected the allegations and said it has worked extensively with parents, experts and law enforcement to protect young people. The company has also argued that “social media addiction” is not a recognised psychiatric condition.
Meta CEO Mark Zuckerberg and Instagram head Adam Mosseri are expected to testify during the trial, adding to the significance of the proceedings.
The case comes after Meta suffered another courtroom setback. A New Mexico judge last week ordered the company to pay $567 million into a state fund for youth mental health and make changes to its platforms after finding Meta responsible for fueling a children's mental health crisis in the state. Meta has said it plans to appeal.
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The latest trial has an unusual structure. US District Judge Yvonne Gonzalez Rogers will oversee the proceedings and is expected to issue her ruling in October. She has empaneled an advisory jury to answer specific questions that could guide her decision.
The stakes extend beyond one lawsuit. Meta faces thousands of similar cases involving alleged harm to young users.
For Meta, the trial could help determine whether the design of its platforms faces fundamental legal limits, potentially affecting how Facebook and Instagram operate in the future.
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