Meta faces potential $200bn fine as US states pursue child safety trial

Thirteen U.S. states have accused Meta of intentionally designing addictive features in Facebook and Instagram that harm children's mental health and privacy. If the lawsuit, filed in 2023, proceeds, it could result in a $200 billion fine, according to the attorneys general. During opening arguments, California deputy attorney general Megan O'Neill accused the company of misleading users, legislators, teachers, and parents.

She cited internal documents stating Meta's belief that the younger users are the most valuable. The states allege violations of the Children's Online Privacy Protection Act and consumer protection laws. Meta argues the case is not about damages but civil penalties, restitution, and distortion. The trial, expected to last six to eight weeks, is led by lawyers from California, Colorado, Kentucky, and New Jersey.

They seek structural remedies, including deletion of personal data from children under 13 and removal of certain design features. Meta disputes the claims, stating it has shut down over a million underage accounts and is actively working to remove them. The company also introduced Teen Accounts with default protections. The trial adds to the growing legal pressure on Meta over child safety issues.