Major Lawsuit Could Cost Meta Billions, Change Facebook’s Future
Social media giant Meta is now facing a major trial in a US federal court. Opening statements began this week. 29 state attorneys general accuse Meta Platforms, Inc. of designing its apps to be addictive. They say Facebook and Instagram keep young users hooked on their platforms.
The states claim Meta knew its platforms could cause addictive behavior. They also accuse Meta of collecting data on children. This landmark case could last up to six weeks.
If the states win, Meta might have to make big changes to how its apps work. The company could also face huge fines. The states are asking for $200 billion in damages. Meta itself once said fines could reach $1.4 trillion.
This $200 billion amount is nearly equal to Meta’s total revenue last year. In 2025, Meta earned almost $201 billion. The company has paid smaller fines before. For example, a court recently ordered Meta to pay $375 million in New Mexico.
Meta denies all these claims. However, this lawsuit adds to other problems for the company. Meta has seen low employee morale and many layoffs. Its investments, like the Reality Labs division, have also lost a lot of money. Reality Labs, which builds virtual reality tools, has lost $70 billion since 2020.
The lawsuit wants to change Meta’s business model. It asks to remove the “infinite scroll” feature. This feature lets users keep seeing new posts without stopping. Meta’s income depends on how many ads users see. The longer people stay on an app, the more ads appear.
The plaintiffs also want Meta to stop using data from minors to create algorithms. They want the company to promote user wellbeing. They also ask for time limits for younger users.
Meta has already introduced some features for teens. It reminds them about their screen time. It also allows them to manage the types of ads they see. A Meta spokesperson, Stephanie Otway, said the company has strong protections for teens. She said Meta is ready to argue its case in court.
However, the lawsuit says these efforts are not enough. It claims teens can easily ignore the notifications.
Meta faces more than 100,000 other lawsuits across the US. These come from individuals, cities, and schools. Experts believe this case could lead to a combined settlement for many lawsuits.
Similar lawsuits also target other social media companies. Snap, TikTok, and Google’s YouTube face claims that their apps are designed to encourage too much use by young people. Some experts compare these cases to the big lawsuits against tobacco companies decades ago. Those cases changed how tobacco products were sold.
