Meta Platforms, the parent company of Facebook and Instagram, could face damages of up to $1.2 trillion in a landmark trial over allegations that it deliberately designed its social media platforms to keep children and teenagers compulsively engaged.

The trial, which began on August 18 in Oakland, California, followed legal action by a coalition of 29 US states. The states allege that Meta prioritised user engagement and profits over the safety and mental well-being of young users.

Prosecutors are challenging features such as infinite scrolling, autoplay videos, disappearing Stories, beauty filters, notifications and algorithm-driven feeds. They claim the features were designed to keep young people on the platforms for longer periods.

Meta is also accused of collecting personal information from children under 13 without parental consent, allegedly violating the US Children’s Online Privacy Protection Act.

In addition to financial penalties, the states want Meta to remove or modify features they describe as addictive and introduce stronger safeguards for children and teenagers.

Meta has denied the allegations, maintaining that it has invested heavily in youth protection, introduced safety tools for teenage accounts and removed accounts suspected of belonging to underage children.

An eight-member advisory jury is hearing the case, but the final ruling will be delivered by US District Judge Yvonne Gonzalez Rogers. The trial is expected to last between six and eight weeks.

A ruling against Meta could significantly change how Facebook and Instagram operate. It could also affect similar cases involving other social media companies, including YouTube, Snap and TikTok.

Source: CNBC