Meta faces possible US$200b penalty as settlement talks emerge
SAN FRANCISCO: Social media giant Meta has been in discussions with multiple US states to settle a major child privacy and consumer protection case out of court, Bloomberg News reported on Tuesday.
San Francisco: Meta, the social media behemoth, is reportedly engaged in settlement talks with several US states over a major child privacy and consumer protection case, according to Bloomberg News. The tech giant, which boasts over three billion global users, faces accusations from a coalition of 29 states that it intentionally engineered its products to attract and exploit minors' data while deceiving the public.
These states allege Meta violated both state and federal laws, with the potential penalties reaching nearly US$200 billion if a loss is confirmed. Negotiations for a mid-trial settlement have reportedly taken place between Meta Platforms Inc. and state attorneys general, with California, Colorado, New Jersey, and Kentucky spearheading the legal proceedings from Oakland, California.
The trial, now in its second week, has seen Meta's Instagram head Adam Mosseri admit to promoting ineffective safety tools for teens, while other witnesses have testified that Meta deliberately designed these tools to fail. Mark Zuckerberg, Meta's founder and CEO, is expected to testify at some point during the proceedings.
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