States take Meta to trial in California in the biggest fight yet over social media harms to children

Meta faces a significant trial in California, marking the most consequential lawsuit among thousands it faces concerning child safety on its platforms. States, collectively seeking vast financial damages potentially totaling up to $1.4 trillion, aim to reshape how Meta operates for Facebook and Instagram. The lawsuit accuses Meta of contributing to the youth mental health crisis by intentionally designing features that hook children into using the platforms.

Additionally, it alleges Meta unlawfully collects data on children under 13 without parental consent, breaching federal law. The lawsuit, initiated three years ago by multiple states, will commence in a federal court in Oakland, California, with four states leading the case - California, Colorado, Kentucky, and New Jersey. The remaining 25 states are anticipated to have their trials subsequently.

Meta vehemently denies the allegations, asserting that the trial will present evidence of its dedication to safeguarding young users. The company states it has heeded parental concerns, collaborated with experts and law enforcement, and conducted comprehensive research to address pressing issues. For Meta, already experiencing a rare profit decline last month due to $2.4 billion in legal costs, the stakes are immense.

The $1.4 trillion figure, disclosed in a legal filing, is nearly equivalent to Meta's entire market capitalization, placing the company at risk of bankruptcy and potential state ownership should it be forced to pay. Attorney Eric Goldman, a professor at Santa Clara University School of Law, highlights the states' aggressive approach, aiming to establish a definitive precedent and seek substantial structural remedies if successful.