Meta battle with California AG could have 'astronomical' consequences

Key Points:

• California Attorney General Rob Bonta is leading a major trial against Meta, accusing the company of fostering addictive behavior in teens and violating laws like COPPA, with opening arguments beginning in Oakland.
• The case involves 29 state attorneys general and could result in significant penalties and mandated changes to Facebook and Instagram's algorithms and design, similar to the impact of Big Tobacco lawsuits in the 1990s.
• Meta recently lost a related case in New Mexico, where it was ordered to pay nearly $1 billion and make service changes, but California's larger market and legal reach could impose even more severe consequences.
• The states seek nationwide injunctive relief to force Meta to remove addictive features such as infinite scroll and autoplay, and to delete personal data collected from children under 13 if found in violation of COPPA.
• Experts warn the trial's outcome could drastically affect Meta's revenue model and AI investments, with potential damages estimated between $200 billion and $1.4 trillion, although Meta disputes the claims and plans to appeal the New Mexico ruling.