Meta trial risks reputational damage that ‘dwarfs’ financial hit

A landmark US trial could result in reputational damage for Meta that surpasses any potential financial penalties, according to an online safety expert. The tech giant is facing allegations that it knowingly designed Instagram and Facebook to keep children hooked on the platforms, potentially leading to sweeping changes in the ways social media products are developed.

Mark Jones, a UK law firm partner, likened Meta's situation to "Big Tech's big tobacco moment", emphasizing the potential for significant reputational fallout. The trial, which involves California, Colorado, Kentucky, and New Jersey, accuses Meta of misleading the public about the safety of its platforms and collecting personal data from children under 13 without parental consent.

While the states have sought billions in damages, the case may ultimately change the mechanics of Instagram and Facebook, including features like infinite scrolling, autoplay videos, and recommendation algorithms. Professor Miriam Buiten, a law and economics professor, stated that altering these features would directly impact Meta's business model, which relies on keeping users engaged. The trial is expected to take place this autumn, with Meta CEO Mark Zuckerberg likely to testify.