In the most consequential legal challenge it’s faced, Meta will have to prove that its platforms aren’t a new generation’s cigarettes.
What happened: The social media giant began its defence yesterday in a case brought by 29 U.S. states accusing it of deliberately harming young users through the design of its platforms and violating youth privacy laws.
With a maximum fine of $20,000 per privacy violation (or per user in this case), Meta could face up to US$1.4 trillion in penalties from the case, which is roughly the value of the entire company.
One lawyer representing California said the actual number would likely be closer to $193 billion, which would still be a near-record for the highest litigation payout in history.
Catch-up: The structure of the legal argument follows a near-identical playbook to the litigation against Big Tobacco back in the ‘90s. That strategy already proved successful in its first test: in a case earlier this year, a California jury found Meta and Google directly liable for a 20-year-old’s mental health issues and ordered the companies to pay damages.
The tech giants have previously held that the First Amendment protects their right to design their algorithms and other features as they see fit, the same way a newspaper can decide what stories to publish.
Why it matters: If Meta loses this case, it could be forced to fundamentally redesign its platforms, including getting rid of features like infinite scroll and content recommendation algorithms. That would set a precedent that could eventually force others — like YouTube, TikTok, and Snap — to do the same.—LA
