Meta Faces $1.4 Trillion Threat As Landmark Social Media Addiction Trial Begins

Meta is beginning a closely watched trial that could reshape how social media companies are held accountable for the impact their platforms have on children and teenagers.

The Facebook and Instagram parent company will face attorneys general representing California, Colorado, Kentucky and New Jersey in federal court in Oakland, California. The case in question accuses it of deliberately designing addictive features to keep young users engaged while misleading the public about potential mental health risks.

The trial before U.S. District Judge Yvonne Gonzalez Rogers stems from a lawsuit filed by 29 states in 2023 and is expected to serve as a bellwether for future proceedings involving similar allegations. Meta CEO Mark Zuckerberg and Instagram chief Adam Mosseri are expected to testify.

At the center of the states' case is an argument that some of the most familiar elements of social media were not simply designed for convenience or entertainment. According to the lawsuit, Meta "developed and refined a set of psychologically manipulative platform features designed to maximize young users' time spent on its social media platforms."

The states point to features including infinite scroll, autoplay, and likes as examples of mechanisms they say encourage prolonged and compulsive use. The attorneys general also allege Meta knew its platforms could contribute to anxiety, depression and suicide among some young users but presented its products as safe.

Another major component of the case involves the Children's Online Privacy Protection Act, or COPPA. The states accuse Meta of knowingly allowing children under 13 to use its platforms and collecting their personal information without obtaining the parental consent required by federal law. Meta strongly denies the allegations and is also challenging the potential financial penalties sought in the case.

According to the company, the states' approach could expose it to damages of as much as $1.4 trillion, an amount approaching Meta's roughly $1.5 trillion market capitalization. "The State AGs may call this a landmark case, but their limited claims are unsubstantiated, and their financial demands are vastly disproportionate," a Meta spokesperson said.

Meta argues that the states have failed to demonstrate that residents were actually deceived or harmed by the specific practices cited in the lawsuit. The company also says governments are attempting to punish it for broader industry problems, including the difficulty of reliably verifying children's ages online.

"We stand by our record of creating strong protections for teens, and look forward to making our case in court," the spokesperson said. The Oakland trial comes at an increasingly consequential moment for Meta and the wider social media industry. Earlier this month, a New Mexico court ordered Meta to pay $567 million to address teen mental health in the state, along with $375 million in civil penalties.

In March, a jury found Meta and YouTube negligent in another social media addiction lawsuit involving a woman who began using the platforms at age 10. The lawsuit alleged that their product designs contributed to her developing a dangerous dependency, anxiety, depression, self-harm and body dysmorphia. The companies were ordered to pay $6 million in punitive and compensatory damages.