Meta meets its own 'tobacco' moment in court

A coalition of four states, including California, Colorado, Kentucky, and New Jersey, sued Meta in 2023 for allegedly designing addictive features in its apps for children. The states aim to prove in federal court that Meta deliberately made Facebook and Instagram addictive for children. Meta strongly denies these allegations and is confident that the evidence will show its commitment to supporting young people.

This case could be likened to the tobacco industry's 1990s legal battles, where decades of research showed the harmful health effects of tobacco use and the industry's attempts to downplay or conceal those impacts. By the early 1990s, several US states sued tobacco companies, leading to a landmark settlement in 1998 that included financial penalties and changes to marketing practices, particularly targeting children.

Jury selection began in Oakland, California, with opening statements expected to start on August 18. The states are demanding significant changes to Meta's apps and substantial financial penalties, up to $1.4 trillion, which is nearly the company's entire market value of around $1.5 trillion. Meta's CEO, Mark Zuckerberg, is one of the key witnesses expected to testify in the case.

The outcome could mark the beginning of a broader reckoning for Meta, with concerns about the gap between what Meta knew privately and what it publicly disclosed. Legal experts predict that similar lawsuits could continue for decades, with Snap, TikTok, YouTube, and Meta already settling with a school district in Kentucky for $27 million to avoid a potentially precedent-setting trial.