At a Glance
Four states accuse Meta of hooking young users and collecting data from children under 13.
Meta rejects the claims and says it has taken steps to protect teens.
The company says potential penalties could reach $1.4 trillion.
A loss could force changes to features such as infinite scrolling.
The case could bring major financial penalties and pressure Meta to redesign parts of Facebook and Instagram.
Meta is facing a major legal fight over how its social media platforms affect young users. Attorneys general from California, Colorado, Kentucky and New Jersey say Meta designed its apps to keep children engaged while collecting data from users under 13 without parental consent.
KEY DETAILS
The trial began Tuesday before District Judge Yvonne Gonzalez Rogers in Oakland, California. The four-state case serves as a test for a larger lawsuit involving 24 additional states.
California Deputy Attorney General Megan O’Neill accused Meta of hiding research about harmful experiences on Instagram and Facebook. She pointed to features such as infinite scrolling as tools that encourage young users to stay online.
Meta attorney Paul Schmidt pushed back, citing company research, including a study showing 20% of teens felt worse after using Instagram. He said the research reflected efforts to understand the problem and improve the platform.
Meta also said it deleted 1.4 million accounts belonging to users under 13 over four years after detecting them.
MARKET REACTION
Meta shares were down 4.45% in the latest trading data.
The company says a loss could bring penalties of up to $1.4 trillion, while the states dispute that estimate. Meta could also be required to remove or change features such as infinite scroll for certain users.
The case comes after a New Mexico court ordered Meta to pay $567 million for teen mental-health issues and $375 million in civil penalties. In March, a jury also found Meta and YouTube negligent in a separate social media addiction case, ordering $6 million in damages.
Investors will watch the trial closely for clues about potential financial exposure and whether regulators could force lasting changes to Meta’s platforms.
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Source: Yahoo Finance
Time: 3:00 PM EEST
