Meta meets its own ‘tobacco’ moment in court

Meta faces a potential legal crisis akin to the tobacco industry's downfall in a new US trial, with billions of users worldwide. Just as states battled tobacco firms over deceptive marketing and health impacts in the 1990s, four states - California, Colorado, Kentucky and New Jersey - have sued Meta, alleging that the company's design of addictive features in its apps harms children.

The trial, set to commence in Oakland, California, could result in hefty penalties, reaching up to $1.4 trillion, against Meta's market value of $1.5 trillion. The core issue is whether Meta deliberately engineered its apps to be addictive for young users, a claim the company strongly denies. While this is not the first lawsuit to hold social media companies accountable for their effects on mental health and safety, experts liken it to the historic tobacco case.

If Meta loses, it could face significant reputational damage and be forced to make substantial changes to its apps. The trial's outcome could set a precedent, potentially leading to a stream of lawsuits against other social media platforms.