Meta’s $18b settlement echoes past tobacco lawsuits – and how they avoided harsh penalties
A lawyer who worked on a class action against tobacco makers says the Meta deal mirrors the playbook of Big Tobacco – and will cost only a few days’ revenue.
Meta has agreed to a $18 billion settlement with US state attorneys-general, reminiscent of past tobacco litigation. In the late 1990s, the author worked on Nixon v Philip Morris, Australia's class action against tobacco manufacturers. Despite the loss, their work laid the foundation for later victories for smoking-related cancer victims.
The tobacco industry's defensive strategies mirrored Meta's, hiding internal research showing harms and focusing on retaining young users. Meta's settlement includes two-hour limits and night mode for teenage users, but the tech giant views it as a strategic move rather than a devastating defeat. Like the tobacco companies, Meta aims to preserve its core business model by accepting financial penalties and limited behavioral concessions.
The lesson from history shows that market exclusion, such as advertising bans and point-of-sale display prohibitions, is what the tobacco industry feared most, and this fear was well-placed. When such laws were eventually passed, they led to a significant decline in smoking rates in Australia.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
