Meta is currently embroiled in a trial that could result in a trillion-dollar penalty and fundamentally alter its advertising model. The lawsuit, led by California's deputy attorney general Megan O'Neill, aims to compel Meta to eliminate certain features deemed addictive, such as infinite scrolling and autoplay videos, from its platforms, Instagram and Facebook.
O'Neill accused Meta of prioritizing profit over user safety and obscuring the presence of underage users on its platforms. Analyst Kate Winick from Forrester highlighted that a verdict against Meta could have far-reaching consequences, potentially likening it to the landmark Big Tobacco lawsuits of the 1990s.
This case is seen as a precursor to similar lawsuits against other social media companies like YouTube and Snap, with California Attorney General Rob Bonta indicating that Meta is merely the first target in a broader legal effort to hold social media accountable for its impact on youth.
Winick also noted that while the industry may not face extinction, it could see a significant decline in usage among younger demographics if these legal challenges continue. The trial's outcome could lead to preemptive changes across the sector, as companies seek to align with new regulations aimed at protecting young users from the adverse effects of social media