Why Meta is staring at potential $200B penalty in US
What's the story
A coalition of US states is seeking around $200 billion in damages from Meta. The lawsuit, which will go to trial on August 18, alleges that Meta intentionally designed its platforms to be addictive for children. The case was originally filed in 2023 by a group of states over claims that Meta's apps were designed with addictive features targeting kids and violating state laws.
Legal implications
Trial set to begin on August 18
Meta had previously claimed in court documents that the financial penalties from this lawsuit could reach $1.4 trillion, nearly its entire market value of about $1.5 trillion.
The company will defend itself in the six-week-long trial starting on August 18, with opening statements scheduled to begin in Oakland near San Francisco.
If Meta loses, the states will seek both a massive financial penalty and changes to its two main apps.
Clarification
States seek damages closer to $193B
A lawyer representing the states clarified during a recent hearing that they are not asking for $1.4 trillion in damages. Instead, they are seeking damages closer to $193 billion.
The prosecutors from California, Colorado, Kentucky, and New Jersey will now have to prove that Meta violated federal and state laws on children's safety and privacy online with its apps.
Defense strategy
Meta denied allegations
Meta has denied the allegations and expressed confidence that evidence will show its commitment to supporting young people.
A federal judge ruled on Thursday that Meta cannot block a key witness, former employee Arturo Bejar, from testifying.
Bejar had previously testified against the social media company at a trial in New Mexico, which Meta recently lost.
Jury selection
Verdict expected by early October
An advisory jury of eight members was selected on Wednesday to assist Judge Yvonne Gonzalez Rogers in making a final decision on the case.
The verdict is expected by early October.
This landmark trial could have major implications for Meta and its business practices, especially those involving children and young users of its platforms.