Hook, hold, harvest and hide: Meta's alleged strategy laid out in first week

California and 28 other states launched a trial on Tuesday against Meta, the world's largest social media company, for allegedly creating addictive platforms and violating children's privacy laws. According to Megan O'Neill, a lawyer representing California, Meta "hooks" users, "holds" them on its platforms, "harvests" their data, and "hides" the truth from the public.

The company's business strategy revolves around these four steps, O'Neill argued. The trial, opened in Oakland, California, just north of Meta's Silicon Valley headquarters, centers on allegations that the company collected data on children under 13 without parental permission and violated both federal and state-level child privacy laws.

Eight jurors heard from O'Neill and attorneys for both Meta and the plaintiffs over the course of the first week of proceedings, along with testimonies from former employees and a psychologist. The lawsuit expects to delve into Meta CEO Mark Zuckerberg and Instagram CEO Adam Mosseri's testimonies in the future. If found liable, Meta could face damages up to $200 billion, equivalent to the company's 2025 annual revenue.

The states are also seeking to force Meta to modify its product design to make it safer for children, which could significantly impact the company's business model and operations. Meta has denied all allegations, with a spokesperson stating that the states are chasing an "outrageous payout." During opening statements, Meta's attorney, Paul Schmidt, acknowledged that people can struggle with social media but emphasized that Meta had implemented tools to address such issues.

The trial is expected to last six to eight weeks, led by attorneys for California, Colorado, Kentucky, and New Jersey. The jury's role is advisory, and they will provide recommendations to Judge Yvonne Gonzalez Rogers, who will ultimately decide on the verdict and damages. Arturo Béjar, a former Meta safety engineer, testified during the trial's first week about his experiences at the company and his concerns about child safety on Instagram, particularly regarding unwanted sexual advances and harmful content.

Béjar claimed that Meta employed a "don't ask, don't tell" strategy when it came to child safety. Despite Meta's attempts to exclude Béjar from testifying, the court rejected all their motions, allowing his testimony to proceed.