Meta is fighting in 29 states over claims that Facebook and Instagram are causing child addiction, risking $1.4 trillion in damages.

Meta is facing major lawsuits from 29 US states regarding Facebook and Instagram's alleged involvement in child addiction and illegal use of youth data, with estimated damages potentially reaching $1.4 trillion.

On August 13, 2569 at 06.52:XNUMX a.m., Reuters reported that Meta Platforms is preparing to face one of the most significant lawsuits concerning the impact of social media on children and youth, after attorneys general from several U.S. states accused the company of designing Facebook and Instagram to be addictive for children and misleading consumers about the safety of the platforms. Meta states that the damages from the lawsuit could reach up to $1.4 trillion, close to the company's market value of approximately $1.5 trillion.

The trial began in federal court in Oakland, California on Wednesday (August 12) and is expected to last approximately seven weeks. The primary allegations come from Colorado, Kentucky, California, and New Jersey, which claim Meta deliberately designed its platform to entice minors to continue using it.

In addition, the case covers allegations from 29 states that Meta illegally collected and used children's data, which may violate U.S. federal law.

The jury selection process began on August 12, and the opening statements are scheduled for August 18. Mark Zuckerberg, founder and CEO of Meta, and Adam Mosseri, head of Instagram, are expected to testify in court.

In addition to seeking damages, the government also wants the court to order Meta to make major changes to Facebook and Instagram across the United States.

The demands range from imposing age restrictions on users, removing the Infinite Scroll feature that allows users to continuously scroll through content, limiting usage time for minors, to adjusting notification systems and content recommendation algorithms to prioritize user well-being over simply increasing engagement.

The government also demanded that Meta remove the algorithms and AI models that were created using children's data.

Meta has denied the allegations, with a company spokesperson stating that Meta strongly disagrees with the claims and is confident that evidence will demonstrate the company's ongoing efforts to support and protect youth, including listening to parents, working with experts and law enforcement, and thoroughly studying related issues.

Meta estimates damages could reach $1.4 trillion.

What has drawn significant attention to this case is the potential scale of the damages. Meta reports that the damages could reach as high as $1.4 trillion, compared to the company's estimated market value of approximately $1.5 trillion. However, state attorneys general have not yet officially disclosed the figures they are seeking.

Legal experts therefore view this case as a potential turning point for Meta and the social media industry, especially if the court not only awards massive damages but also orders the company to change its features and business model.

Eric Goldman, Professor and Co-Director of the High Tech Law Institute at Santa Clara University School of Law. It is viewed that the substantial damages and court orders dictating how features are designed could pose a risk to the very existence of social media companies.

The latest lawsuit comes amid increasing pressure on social media companies worldwide, with the group of states' lawsuit beginning in 2566 following a joint investigation into the impact of Instagram and Facebook on youth.

The investigation took place after... Frances Haogen, a former Meta employee and whistleblower. They testified before the U.S. Senate in 2564, alleging that the company knew its products could harm youths and knew how to make them safer, but failed to take certain changes because it prioritized profits.

A recent Reuters/Ipsos poll found that 85% of Americans believe social media can be addictive for children, while 61% think social media companies should be more strictly regulated.

Meta also faces numerous similar lawsuits, with this case being part of more than 3,000 lawsuits filed in federal court against Meta, Snap, Alphabet (YouTube's parent company), and ByteDance (TikTok's parent company).

In addition, there are more than 3,300 cases, mostly filed by individuals, currently pending in Los Angeles state courts.

Meta stated that these numerous lawsuits could have a significant impact on the company's business and financial performance, while the two previous jury cases resulted in unfavorable verdicts for Meta.

Most recently, last week, a New Mexico court ordered the company to pay $567 million and modify its platform after the court found that Meta contributed to the worsening mental health crisis among children in the state.

The Oakland case is therefore seen as Meta's biggest test yet on the issue of social media and youth, because the ruling may not be limited to damages but could lead to fundamental changes to Facebook and Instagram in the US, from algorithms and user interfaces to restrictions on child and youth users.

Reference: reuters.com

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