Meta, the technology group founded by Mark Zuckerberg, faces this week the most consequential trial in its history, as a federal court in Oakland, California, considers allegations over the impact of Facebook and Instagram on the health and wellbeing of children and young people. A group of more than 20 states is seeking compensation exceeding 1.400 trillion dollars (about 1.200 trillion euros), while also demanding changes to the way the two platforms operate.
The amount sought is practically equivalent to the entire stock-market value of the company. If Meta were to be ordered to pay the full sum, it would be virtually driven into bankruptcy. Legal experts, however, believe judges would soften the amount of compensation to avoid the disappearance of one of the world’s largest companies.
The case comes amid a growing accumulation of complaints against Meta around the world over the way it operates its social platforms. The allegations include aggressive practices, inadequate content moderation, disinformation, strategies designed to keep users engaged, and the collection of data without consent.
The California proceedings are the first in a series of cases brought by states against Meta. Four states — California, Colorado, Kentucky and New Jersey — accuse the technology company, one of the world’s seven largest, of contributing to a mental health crisis among children and young people by knowingly and deliberately designing features that generate addiction among children.
The states also accuse Meta of collecting data from children under 13 without parental consent, which they say constitutes a violation of federal law. According to the complaint cited by AP, “Meta ha utilizado tecnologías poderosas y sin precedentes para atraer, involucrar y, en última instancia, atrapar a jóvenes y adolescentes. Su motivación es el lucro y busca maximizar sus ganancias financieras”.
State prosecutors further argue that the company misled the public about the risks that its platforms posed to the mental health of adolescents. The proceedings follow a wave of litigation in which half of the country’s states have filed a lawsuit over alleged abuses by Meta, including practices intended to encourage addiction, inadequate control of content and permissiveness towards hateful and divisive messages.
The prosecutors from California, Colorado, Kentucky and New Jersey, all controlled by Democrats, will lead the first trial. Further proceedings involving claims brought by other states are expected in the coming months, potentially extending the legal scrutiny of Meta’s business practices.
Meta has rejected the accusations and is seeking to have the evidence presented against it dismissed. The company has also sought to demonstrate its commitment to the mental health of young people. “Hemos escuchado a los padres, colaborado con expertos y las fuerzas del orden, y realizado una investigación exhaustiva para comprender los problemas más importantes”, the company said in a statement.
The California trial begins only 10 days after another major legal setback for Meta. A state court in New Mexico ordered the company to pay 567 million dollars to a youth mental health fund and required it to change the operation of its social networks. The court found that Meta was responsible for harming the wellbeing of minors and failing to protect them from sexual exploitation on its platforms.
The legal campaign against social media abuses is being pursued largely at state level in the United States, while the federal government under President Donald Trump is described in the source material as a strong supporter of technology companies. Trump has frequently praised their executives and hosted them at private meetings at the White House. Among those invited as prominent guests to Trump’s inauguration ceremony for his second term were Mark Zuckerberg, Elon Musk (Tesla), Sundar Pichai (Alphabet), Satya Nadella (Microsoft) and Tim Cook (Apple), among other technology executives.
The California case forms part of a broader series of legal proceedings against major technology companies over market abuse, competition issues and, particularly, the design of social media platforms. State prosecutors argue that Meta created and introduced features intended to capture users’ attention and extend the amount of time they spend on its services.
Among the features identified in the complaint are the Like button, infinite scrolling and recommendation algorithms that, according to the complaint cited by NPR, “fomentan el uso compulsivo”. Prosecutors argue that these practices generated substantial financial benefits because advertising is Meta’s principal source of revenue.
The states also allege that Meta prioritised engagement with young users over their safety. They argue that Facebook and Instagram contained systems that encouraged addictive behaviour and disrupted the education and sleep of younger users. The platforms also included visual filters that, according to the complaint, encouraged eating disorders and body dysmorphia. The allegations are presented against the backdrop of Meta’s stated efforts to prioritise the wellbeing of young users.
Meta disputes that account. “Los fiscales generales no presentan pruebas que evidencien que alguien en sus estados haya sido engañado, afirman que funciones inofensivas como tener una cuenta adicional de Instagram perjudicaron de alguna manera a sus residentes e intentan penalizar a Meta por problemas que afectan a todo el sector, como la verificación de edad”, a Meta spokesperson told NPR. “Respaldamos nuestro historial de crear sólidas protecciones para los adolescentes y esperamos presentar nuestro caso ante los tribunales”, the spokesperson added.
The company has already lost two cases involving harm to children and adolescents this year. Earlier this year in Los Angeles, a state court awarded six million dollars in damages to a young woman who said she became hooked and addicted to Meta and YouTube’s social networks as a child.
The legal pressure is also appearing in Meta’s financial results. The company reported an unusual fall in profits in the previous quarter despite a sharp increase in revenue. Analysts focused on rising legal expenses connected to pending lawsuits, estimated at 2.400 billion dollars. Between April and June, Meta earned 15.848 billion dollars, 14% less, despite recording revenue of 60.801 billion dollars, an increase of 28%.
The California proceedings have been brought together by judges in the state in an unusual form of collective litigation known as multidistrict litigation. The arrangement brings thousands of lawsuits together in order to prevent duplication in processes such as evidence gathering and to establish a single criterion.
For Meta, the stakes therefore extend beyond a single damages claim. The court will be asked to consider allegations concerning the design of Facebook and Instagram, the protection of minors, the collection of children’s data and the company’s representations about the risks associated with its platforms. With further cases expected to follow, the outcome in California could become an important reference point for the wider legal challenge facing Meta.
