Meta Faces Landmark Trial That Could Reshape its Platforms and Cost $1.4 Trillion

Meta will head to court on Tuesday for a potentially landmark child-safety trial that could have enormous financial and operational consequences for the tech giant — with four states seeking up to $1.4 trillion in penalties and sweeping changes to Facebook and Instagram.

Three years ago, 30 U.S. states sued Meta, alleging that the company had knowingly designed Facebook and Instagram in ways that encourage children to spend more time on its platforms and contribute to a youth mental health crisis.

The first trial begins Tuesday in federal court in Oakland, California, and features four of the states as plaintiffs — California, Colorado, Kentucky and New Jersey. The other states involved in the lawsuit are expected to have their own trials later.

The case could become one of the most significant legal challenges Meta has faced. The states are seeking as much as $1.4 trillion in penalties, along with changes to the way Facebook and Instagram operate, including limits on features such as like counts and infinite scrolling.

If Meta ultimately loses, the case could lead to major changes in how its platforms are designed and how young people use social media.

At the heart of the states’ case is the allegation that Meta built features for Facebook and Instagram specifically to keep young users engaged for as long as possible. According to a report by NPR, the lawsuit points to features such as the “like” button, infinite scrolling and recommendation systems that it says can encourage repeated, compulsive use. The states argue that Meta had a financial incentive to maximize this engagement because its business depends on advertising: the more time users spend on its platforms and the more precisely ads can be targeted, the greater Meta’s potential advertising revenue.

The states also accuse Meta of prioritizing user engagement over children’s well-being. The lawsuit alleges that excessive use of its platforms interfered with young people’s sleep and education, and that some visual filters contributed to concerns including eating disorders and body dysmorphia. The states also allege that Meta knowingly allowed children under 13 to use its platforms and collected their data without parental consent, violating federal law.

A Meta spokesperson tells NPR by email that the states’ allegations are narrow and unsupported, and that the lawsuits’ financial demands are “vastly disproportionate.” The spokesperson also writes that Meta stands “by our record of creating strong protections for teens, and look forward to making our case in court.”

Meta has faced two major setbacks in state courts this year in cases involving allegations similar to those in the federal lawsuit. In March, a Los Angeles jury found that Meta and Google are liable for harm caused to a young woman who says she developed an addiction to their platforms as a child, awarding her a total of $6 million in damages.

Then, last week, a New Mexico court ordered Meta to pay a further $567 million over alleged harms to young people, following a $375 million penalty imposed in March. Together, the rulings represent some of the largest financial penalties Meta has faced over child safety on its platforms.

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