Meta stock sinks as landmark s... Note
Fast Company

Meta stock sinks as landmark social media addiction trial gets underway. What’s at stake for the tech giant?

Opening statements in a major trial against Meta Platforms will be heard in Oakland, California today. Twenty-nine states are suing Meta, alleging the company deliberately designed Facebook and Instagram to be addictive, particularly exploiting younger users. Attorneys general from California, Colorado, Kentucky, and New Jersey are leading the lawsuit. They claim Meta knew its platforms could harm young people, yet continued addictive practices for profit. Allegations include exploiting vulnerabilities to foster compulsive use and deceiving the public about risks. The suit also accuses Meta of illegally collecting children's data without parental consent. Meta denies these claims, arguing the states' demands are unsubstantiated and disproportionate. The company asserts it has strong protections for teens and looks forward to presenting its case. If found guilty, Meta could face over a trillion dollars in financial penalties and be forced to alter core platform features. Potentially addictive features like "likes," infinite scroll, and autoplay are under scrutiny. These changes could significantly impact Meta's advertising revenue by reducing user engagement. The trial is expected to last six to eight weeks, with executives like Mark Zuckerberg potentially testifying. Meta's stock price has fallen recently, partly due to investor concerns about this trial's potential consequences.
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