Meta faces high-stakes lawsuit over child social media addiction

Meta, the parent company of Facebook and Instagram, is once again defending itself in court, this time facing accusations that it deliberately fostered addiction among child users of its social media platforms to boost profits. The trial, taking place in Oakland, California, centers on claims that the company prioritized user engagement and data collection above the well-being of young users.

Arturo Béjar, a whistleblower and former Meta employee, testified that "Instagram transformed from a product you can use into a product that uses you." California's Deputy Attorney General, Megan O’Neill, characterized Meta's business model as "Grab users. Keep them as long as possible and harvest their data. Hide the truth from the public." She argued this strategy is particularly effective with children, contributing to rising rates of depression and mental health issues among young people.

Prosecutors contend that Meta possessed extensive knowledge about the developing brains of children, including their limited ability to control impulses, and exploited this understanding. This lawsuit carries particularly high stakes for Meta, potentially exceeding the impact of previous legal defeats. In March, Meta and YouTube were ordered to pay $6 million in damages to a young woman who developed an addiction to their apps as a minor. More recently, a judge in New Mexico ruled that Meta must pay nearly $1 billion for its role in causing mental harm to young people.

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Instagram transformed from a product you can use into a product that uses you.

Meta is appealing both of these judgments. The current Oakland case is one of four selected by the court from thousands of lawsuits filed nationwide against Meta, YouTube, TikTok, and Snapchat by states, municipalities, schools, and individuals. Public prosecutors from 29 states have sued Meta, alleging it endangers children's safety and privacy.

The outcome in Oakland could set a precedent for other cases. Furthermore, the $200 billion (172 billion euros) in damages sought by the plaintiffs represents a potentially devastating financial blow to Meta. This comes at a time when the tech giant requires significant capital for investments in data centers and artificial intelligence infrastructure, necessitating further borrowing. The ongoing legal battles are also incurring substantial costs, with Meta's legal services expenses reaching $2 billion in the second quarter.

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Grab users. Keep them as long as possible and harvest their data. Hide the truth from the public.