COMPANIES

Meta faces $200bn legal battle over alleged child addiction

Meta

Meta faces a $200 billion legal battle over alleged child safety failures.

Meta is facing a huge legal fight in the US. A trial now under way could cost the company billions and force major changes to Facebook and Instagram. But the biggest question is that did Meta know its apps compromise child safety?

29 states take Meta to court for compromising child safety

As reported by The Hindu, a federal trial began in Oakland, California, on August 18. Twenty-nine US states accuse Meta of designing Facebook and Instagram to keep young users hooked. They also say the company hid research about the risks and failed to protect children. The states say Meta used features such as endless scrolling, alerts, likes and recommendation tools to keep users online for longer. They argue that young people are more likely to be affected by these features.

Prosecutors told the court that Meta knew about problems linked to young users but did not do enough to stop them. The case also includes claims that the company collected data from children under 13 without proper parental consent. The trial is expected to last about six to eight weeks. Meta CEO Mark Zuckerberg and Instagram boss Adam Mosseri are expected to testify during the case. Meta has strongly rejected the claims.

$200bn claim puts huge pressure on Meta

According to recent reports, the states are seeking about $200 billion in damages. That figure is close to the company’s full yearly revenue. Meta has also warned that the legal exposure could be much higher, with a court filing discussing a possible figure of up to $1.4 trillion. However, the judge has called that estimate unreasonable. The money is not the only concern. The states also want major changes to how the apps work.

They want Meta to remove some features, including infinite scroll. They also want the organization to stop using personal data from children in certain algorithms and AI models. Time limits and stronger safety steps for young users are also being sought. The possible $200 billion penalty would be a huge burden if imposed. But the final amount will depend on what the court decides and what penalties or other remedies are ordered.

Meta

A case that could change social media

The legal fight is about more than money. A ruling against Meta’s apps could change the way it works forever. That could affect the system that keeps people scrolling and helps the company sell ads. Meta says it already has tools that help teens manage their time online. The company added features that remind young users when they have spent too long on its apps.

The states argue those steps are not enough. They say a user can simply dismiss the warning and keep scrolling. The case could also affect other tech firms. Social media companies such as TikTok, YouTube and Snap face similar claims from families, states and other groups. A major ruling against Meta could bring more lawsuits and new rules across the industry.

Authorโ€™s Opinion

The case is bigger than a possible fine. Social media is now part of daily life for many young people. If Meta is found responsible, the result could push the whole tech industry to rethink how it designs apps keeping child safety in mind.

READ MORE: Meta could remove likes from Instagram for users under 18.

ALSO READ: Apple builds its own AI model for China as rivals surge.

READ NEXT: Meta takes new AI gamble as Chinese rivals gain ground.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top
๐Ÿ  Home ๐Ÿ“ฐ News โšฝ Companies ๐Ÿ Startups ๐Ÿ† Markets