Meta Faces Landmark California Lawsuit That Could Force Major Platform Overhauls

Meta is confronting a high-stakes lawsuit in California that could fundamentally reshape its social media platforms, Facebook and Instagram. Beyond potentially massive fines, a negative verdict could compel the tech giant to overhaul core algorithms and features designed to maximize user engagement.

The trial, led by California Attorney General Rob Bonta, centers on accusations that Meta has fostered addictive behaviors in young users. The case involves a coalition of attorneys general from 29 states, building on a joint filing initiated in 2023. Lawyers representing California, Colorado, New Jersey, and Kentucky will argue the case, which began with jury selection last week in federal court in Oakland.

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California matters more than any other jurisdiction in the U.S. Here the company is subject to the most extensive legal authority, and what happens in this state is watched around the world.

Industry experts are drawing parallels to the "Big Tobacco" era of the 1990s, when tobacco companies faced significant penalties and diminished influence after misleading the public about the harms of their products. This lawsuit represents a critical moment for social media regulation, with Meta at its center.

Adding to the pressure, Meta recently lost a separate case in New Mexico, resulting in court-ordered service modifications and a nearly billion-dollar payment. However, California's considerable influence means a loss in its home state could trigger far more extensive repercussions. Julia Powles, executive director of the UCLA Institute for Technology, Law & Policy, noted that proceedings in California carry significant weight globally. Raúl Torrez, New Mexico's Attorney General, described the potential effects on Meta, which derives 98% of its revenue from online advertising, as "astronomical."

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astronomical