Meta Faces Legal Challenge Over Addictive Features
Meta Platforms is facing a major legal challenge in California. A group of U.S. states accuses the company of designing Facebook and Instagram to promote addictive use among children and teenagers. Opening arguments began on Tuesday in Oakland federal court. California Attorney General Rob Bonta is leading the case with officials from Colorado, New Jersey, and Kentucky. The lawsuit, filed in 2023 by 30 states, claims violations of federal and state privacy laws, including the Children's Online Privacy Protection Act.
The plaintiffs want significant changes to Meta's platforms. They are asking for parental verification for teenagers, changes to recommendation algorithms, and limits on features that encourage long use. These changes aim to address worries that Meta's features contribute to a youth mental health crisis. The lawsuit claims that Meta has knowingly designed its platforms to attract and engage young users for profit. This strategy could lead to damages of up to $1.4 trillion, according to documents filed by the company.
This trial comes after a recent loss for Meta in New Mexico. A jury found the company liable for violating the state's unfair practices law, resulting in a $567 million penalty. New Mexico Attorney General Raúl Torrez pointed out that a similar ruling in California could have much larger financial consequences due to the state's population and market size. "If you map that same argument onto California… that’s a potentially massive and market-shifting force," Torrez said.
Meta has publicly denied the allegations. The company states it has worked with parents and experts to address safety concerns. Last month, Meta reported a profit decline, partly due to $2.4 billion in legal expenses. This adds to the stakes of the ongoing litigation.
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The outcome of this trial could greatly affect Meta's financial standing and operational practices. This could impact its advertising revenue model, which makes up about 98% of its income. A ruling in favor of the states could lead to major operational changes and financial liabilities that may threaten the company's viability. Watch for updates on the trial's progress and any potential settlements or rulings in the coming weeks.
Based on reporting by: livemint.com, independent.co.uk