Meta has faced a federal lawsuit on Tuesday (the 18th) that could result in one of the largest financial and operational consequences ever considered for the company. Attorneys General from four US states accuse the company of designing Instagram and Facebook to encourage compulsive use among teenagers and are demanding compensation of up to $1.4 trillion.
The lawsuit also calls for changes to how the platforms operate. Requested measures include stricter age verification for users, modifications to recommendation systems, limitations on notifications, and the elimination of infinite content scrolling.
This dispute comes amid a series of lawsuits filed in the United States against social media companies over potential harm to children and adolescents. According to the states, the business model of these platforms contributed to mental health issues among young people. Meta denies these allegations, asserting that the claims do not prove actual harm.
The suit, filed in federal court in Oakland, was brought by the Attorneys General of California, Colorado, Kentucky, and New Jersey. The case accuses Meta of seeking to increase the time teenagers spend on its services while simultaneously trying to create an impression for parents and authorities that the products are safe for this audience.
The legal campaign is not limited to financial demands. The states insist on changing elements of the daily user experience. These measures include more stringent age verification mechanisms, the exclusion of artificial intelligence algorithms trained on children's data, and the interruption of continuous feed scrolling.
Other changes mentioned in the filings include parental controls for teenagers, the removal of certain image editing tools, the cessation of automatic video playback, restrictions on creating multiple accounts, and limitations on ephemeral content like Stories.
Government bodies also question engagement mechanisms. Like counts are cited as a resource capable of stimulating social comparison among youth, while frequent notifications are described as tools used to bring users back into the applications.
Internal Meta research cited in the proceedings allegedly revealed a link between Instagram-driven social comparison and effects such as increased loneliness, poor body image, and negative mood changes. Research mentioned in the lawsuit also connects engagement metrics with feelings of rejection and depression among teenagers.
One example used to illustrate this argument involves a girl named Kaley. According to her testimony in court, at nine years old, she created dozens of accounts on Instagram and YouTube to artificially increase the number of likes on her posts. This strategy, according to the proceedings, was aimed at expanding the feeling of approval and self-esteem. She was later diagnosed with depression at age ten.
Pressure on Meta intensified following unfavorable rulings in state courts. In New Mexico, a judge ruled that the company must pay $942 million in damages and remedial measures, as well as implement changes to protect underage users. Among the mandates were the removal of like counts for individuals under 18 and restrictions on teens sending and receiving explicit images.
The same judge also set limits on notifications sent to young people. The ruling required that certain alerts not trigger during school hours or at night. Meta has stated its intention to appeal this decision.
The federal dispute could have broader implications. The four states that filed this suit represent only part of the legal campaign against the company, which includes actions by other government bodies.
The financial scale of the case draws attention, as the demand for up to $1.4 trillion in compensation approaches Meta's total market capitalization. If the company loses, the impact may not be limited to paying compensation. The ruling could also establish structural changes in the products used daily by millions of people.
Anticipation of significant consequences is already reflected in the company's investor communications. Chief Financial Officer Susan Li stated in comments prepared for investors last month that Meta is facing various lawsuits related to youth issues in the US, some of which could lead to substantial financial losses.
The lawsuit will be heard by federal judge Yvonne Gonzalez Rogers, who presides over the case in California. She also oversaw the case this year involving Elon Musk and OpenAI, where the jury ruled that Musk missed the deadline to file his suit. There will also be a jury in the case against Meta, but its decision will be advisory to the magistrate.
The presence of a jury adds another element of uncertainty for the company. In recent years, juries have already rendered important decisions against large technology companies, including a verdict declaring Google's monopoly in its mobile app store illegal.
For platform regulation watchdogs, this case marks a shift in the social reaction phase toward technology companies. Jim Steyer, founder of Common Sense Media, assesses that the accumulated dissatisfaction over the years has stopped being just a trend and has begun leading to concrete legal outcomes.
The prosecutors' strategy also seeks to draw parallels with the long-running legal campaign against the tobacco industry in the United States. According to arguments presented in the filings, the multiplication of lawsuits, the number of potential defendants, and the size of the compensation can make it difficult for companies to simply accept any defeat.
Meta, for its part, disputes the states' interpretation. The company argues that the accusations are unfounded, questions the existence of sufficient evidence of actual harm, and considers the demanded amounts disproportionate. The outcome of the lawsuit may not only determine the consequences for the company but also influence other similar lawsuits still pending in the United States.
