What happens to Instagram and Facebook if Meta loses its biggest trial

Meta is facing one of its most consequential legal battles as attorneys general from 29 U.S. states pursue a federal case alleging that Instagram and Facebook harmed young users and violated federal law concerning children’s data.

The trial underway in Oakland involves California, Colorado, Kentucky, and New Jersey, while the remaining states are expected to proceed separately.

The four states in the current trial are seeking massive financial penalties, with more recent trial coverage reporting about $200 billion, while earlier filings cited Meta’s estimate of up to $1.4 trillion. The states are also seeking changes to aspects of Meta’s platform design, including infinite scrolling, notifications, and recommendation systems.

Why Meta is facing the trial

The federal lawsuit began in 2023 after a multistate investigation into Instagram and Facebook’s impact on young users. The current federal case involves attorneys general from 29 U.S. states, while the opening trial is focused on claims brought by California, Colorado, Kentucky, and New Jersey.

The states accuse Meta of violating federal law, misleading consumers about the safety of its platforms, and collecting data from children under 13 without parental consent.

The states also claim Meta designed features on Instagram and Facebook to keep children and teenagers engaged for longer periods. The allegations include claims that the company used features such as infinite scrolling and notifications to encourage prolonged use.

The financial stakes are significant. Newer trial coverage reports that the states are seeking about $200 billion in damages, while Meta previously said in court filings that potential penalties could reach $1.4 trillion.

Meta denies the allegations and says it has taken steps to protect young users. The company has argued that it has a longstanding commitment to supporting teenagers and improving safety on its platforms.

The case is being heard by U.S. District Judge Yvonne Gonzalez Rogers, a federal judge in California who has handled several major technology disputes.

What the states want Meta to change

The states are seeking changes to several features and systems that are central to Instagram and Facebook. Their proposed remedies include changes to recommendation systems, restrictions on engagement-focused features, and the elimination of infinite scrolling.

The states are also seeking limits on notifications and other measures intended to reduce prolonged use by younger users.

Another major issue involves children’s data. The states are seeking remedies related to data collected from children under 13, including the deletion of certain data and the technology derived from it.

The proposed remedies go beyond financial penalties. If the states prevail, Meta could face court-ordered changes to how Instagram and Facebook operate, rather than simply paying damages.

Meta faces pressure after New Mexico case

The federal trial follows a separate proceeding in New Mexico that resulted in significant rulings against Meta. In March, a jury found Meta liable under New Mexico’s consumer protection laws and ordered the company to pay $375 million in civil penalties.

In August, Judge Bryan Biedscheid ordered Meta to pay an additional $567 million and imposed further restrictions and safety measures. Together, the financial orders total $942 million.

Biedscheid also found that Meta’s conduct constituted a public nuisance and ordered measures including restrictions on teen use, notifications, adult contact with minors, AI chatbot safeguards, and additional protections for children. Meta has said it plans to appeal the ruling.

The New Mexico remedies apply to Meta’s operations in that state. The current federal case has a potentially broader reach because it involves attorneys general from 29 states, although the initial Oakland trial involves California, Colorado, Kentucky, and New Jersey.

Evidence from a separate young user’s case

A separate Los Angeles County case has added pressure to the broader legal fight over social media design and young users.

Kaley G.M., a young woman who sued Meta and Google, testified that she began using Instagram at age 9 and described becoming heavily reliant on social media engagement. She said her childhood use of Instagram and YouTube contributed to anxiety, depression, and insecurity about her appearance.

Her testimony came from a separate lawsuit and does not by itself establish that Meta’s platforms caused the mental-health problems alleged in the broader federal case. It is nevertheless part of the broader body of litigation examining the effects of social media design on young users.

Evidence in other litigation has examined whether features such as likes, recommendations, autoplay, and notifications can contribute to prolonged or compulsive use. State attorneys general are using broader evidence about platform design and youth behavior to support their claims against Meta.

What a loss could mean for Meta

The biggest consequence of losing the case may not be the financial penalty. The states are seeking changes to systems that have been part of Instagram and Facebook for years.

If the court grants those requests, Meta could be required to change recommendation systems, limit notifications, eliminate infinite scrolling, and adopt additional protections for younger users.

The company could also face remedies concerning data collected from children and technology derived from that data. The exact impact would depend on the remedies ultimately ordered by the court.

Why the case could affect Meta across the U.S.

The current federal case has a broader potential scope than the New Mexico proceeding because it involves 29 states and seeks remedies extending beyond a single state’s laws.

If the court orders broad relief, Meta could face pressure to make changes across its U.S. platforms rather than maintain different versions of Instagram and Facebook for individual states. The extent of any nationwide changes would depend on the court’s final orders.

That would make the case significant from an operational perspective. Changes to recommendation systems, notifications, data practices, and other engagement-related features could affect how younger users interact with Meta’s platforms.

What comes next for Instagram and Facebook

Meta continues to deny the allegations and is expected to defend its platform design and youth-safety measures throughout the proceedings.

The outcome could determine whether the company must make significant changes to features such as infinite scrolling, notifications, and recommendation systems for younger users.

The case also comes as Meta deals with the financial and operational consequences of the separate New Mexico ruling, which imposed a total liability of $942 million, along with additional youth-safety measures.

For now, the final remedies remain uncertain. If the states prevail, however, Meta could face a combination of substantial financial penalties and court-ordered changes to Instagram and Facebook.

The eventual rulings will determine the scope of those changes and whether they remain limited to particular states or have broader implications for the company’s U.S. operations.

TL;DR

• Meta is facing a federal lawsuit from 29 U.S. states over allegations involving young users, children’s data, and the design of Instagram and Facebook.
• Newer trial coverage reports that the states are seeking about $200 billion in damages, while Meta previously said in court filings that potential penalties could reach $1.4 trillion.
• The states are seeking changes to recommendation systems, infinite scrolling, notifications, and other engagement-focused features.
• They are also seeking remedies concerning data collected from children under 13.
• Meta denies the allegations and says it has taken steps to support and protect young users.
• A separate New Mexico case resulted in $375 million in civil penalties followed by an additional $567 million order, bringing the total financial liability to $942 million, along with additional child-safety measures.
• A loss in the federal case could require broader changes to Instagram and Facebook, depending on the remedies ultimately ordered by the court.

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This article was made with AI assistance and human editing.