Meta faces potential penalty of up to US$1.4 trillion as landmark social media trial begins
This concerns claims that the firm deliberately designed Facebook and Instagram to encourage compulsive use among young users
Meta Platforms is set to face a landmark trial on August 18, where a coalition of 29 state attorneys general are accusing the company of deliberately designing Facebook and Instagram to encourage compulsive use among young users. The allegations include violating state consumer protection and federal privacy laws, potentially resulting in penalties of up to US$1.4 trillion - an amount close to Meta's market capitalisation.
The trial, taking place in a federal court in Oakland, California, is significant as it centers on alleged violations of state consumer protection and federal privacy laws, which carry fines of up to US$20,000 per violation. The attorneys general are seeking court orders to force Meta to change its platform operations. Meta has denied the allegations, accusing the attorneys general of seeking unreasonable design changes and an "outlandish payout".
The trial comes amid growing global concern over the potential harms of heavy social media use, particularly on young people.
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