Meta faces a $1.4 trillion threat that could mean ‘turning in the keys and walking away’—but the stakes of the case reach across tech
The $1.4 trillion figure may be unlikely, but the case could give states a new way to challenge how social media platforms are designed.
Meta, a tech giant valued at nearly $1.4 trillion, stands accused by four states of misleading the public about the risks its platforms pose to young users and of designing features that keep children hooked. California, Colorado, Kentucky, and New Jersey sued Meta this year, alleging violations of the Children's Online Privacy Protection Act (COPPA) and claiming the company's actions endanger millions of users.
The potential penalties, if met, could equal the company's total value, leaving it to turn in its keys and walk away. However, the advisory jury and the judge holding the final decision suggest Meta may not face total bankruptcy. While Meta denies the claims, arguing that the states have not shown any harm, the case is about more than just monetary penalties.
The attorneys general are challenging Meta's editorial choices, which could have significant implications for how social media platforms operate.
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