Meta, the tech giant that owns Facebook, Instagram, and WhatsApp, is facing one of the biggest legal challenges in its history this week in a federal court in Oakland, California. A coalition of 29 U.S. states is accusing the company of deliberately designing its platforms to create addiction among young people, collecting data from minors without parental consent, and concealing the mental health risks to children and adolescents. The lawsuit, filed in 2023, seeks damages that could reach $1,4 trillion , a figure close to the company's market capitalization, although the states have indicated that a more likely amount would be around $200.000 billion.
The trial, which began this week with jury selection and opening statements, is being presided over by Judge Yvonne Gonzalez Rogers, the same judge presiding over Elon Musk's case against OpenAI. The trial is expected to last six to seven weeks , with a verdict anticipated in October. The attorneys general of California, Colorado, Kentucky, and New Jersey are acting as lead prosecutors on behalf of the thirty states involved, and have likened this moment to the lawsuits against tobacco companies in the 90s, when multibillion-dollar fines transformed the tobacco industry.
What exactly is Meta being criticized for?
The prosecution alleges that Meta knowingly implemented features such as infinite scrolling, constant notifications, "like" buttons, and recommendation algorithms to keep young users glued to the screen for as long as possible. Prosecutors claim the company prioritized advertising revenue over the well-being of minors and even collected personal information from children under 13 without parental consent, violating the Children's Online Privacy Protection Act (COPPA).
Furthermore, the 233-page lawsuit alleges that Meta misled the public about the dangers of its platforms, concealing internal research that already warned of the negative impact on the mental health of teenagers. The plaintiffs are demanding the deletion of illegally collected data, as well as the redesign of addictive features , including strict time limits for minors, a ban on autoplay videos, and an end to push notifications.
Meta's defense: "There is no such thing as social media addiction"
Meta has rejected all the accusations and called the financial claims "grossly disproportionate" and "baseless." The company argues that social media addiction is not a recognized psychiatric diagnosis , and that prosecutors have not provided evidence that any user was directly deceived or harmed by its platforms. In a statement, a Meta spokesperson noted that the states "are trying to penalize Meta for issues that affect the entire industry, such as age verification."
The defense has also invoked Section 230 of the Communications Decency Act, which protects platforms from being held liable for third-party content, and the First Amendment. Mark Zuckerberg, CEO of Meta, and Adam Mosseri, head of Instagram, are expected to testify during the trial , along with former employees who have become whistleblowers and researchers specializing in the impact of social media on youth.
A history of legal defeats
Meta arrives at this major trial after several setbacks in court. On August 6, a New Mexico judge ordered the company to pay $567 million to a youth mental health fund , in addition to imposing changes on its social media platforms, such as removing the "like" count for users under 18 and limiting notifications. Judge Bryan Biedscheid described Meta as a "public nuisance" and compared its harmful effects to those of factory air pollution.
In March, a Los Angeles jury also ordered Meta and YouTube to pay $6 million to a 20-year-old woman who claimed she became addicted to social media as a child, which led to depression and suicidal thoughts. The company has already announced it will appeal both rulings , but experts believe these decisions set a dangerous precedent for the Oakland case. There are currently more than 10.000 individual lawsuits and nearly 800 school district lawsuits pending nationwide against Big Tech for harm to youth mental health.
The economic impact and spending on artificial intelligence
The cost of this legal battle is already being felt in Meta's accounts. The company reported $2.400 billion in legal expenses in the second quarter of 2026 alone , contributing to a 14% drop in quarterly profits, despite revenue increasing 28% to $60.801 billion. Analysts point out that the company relies heavily on its advertising business, which accounts for 98% of its revenue, to fund its massive investments in artificial intelligence, which could reach $145.000 billion this year.
New Mexico Attorney General Raúl Torrez, who led the lawsuit against Meta in his state, has warned that the consequences for the company could be "astronomical" if the same argument is applied in more populous states like California, Florida, or Texas. "We're talking about a potentially enormous force capable of transforming the market ," he told CNBC. Meanwhile, Julia Powles, director of the UCLA Institute for Technology, Law, and Policy, emphasizes that "California is more important than any other jurisdiction in the United States," as it is where Meta is subject to the greatest legal scrutiny and is a jurisdiction monitored globally.
The European and Spanish context
While this legal battle rages in the United States, Europe is also taking steps to protect minors in the digital environment. In Spain, the Minister of Youth and Children, Sira Rego, has announced that the law to protect minors in digital environments could be approved "after the summer ." This legislation would prevent access to social media for those under 16 when the content is harmful, and would place the responsibility on the major platforms, which would have to guarantee a safe environment and manage usage limits themselves.
Rego favors regulation over outright prohibition and advocates supporting families with educational resources within the National Strategy for Safe Digital Environments. The minister has also called for stricter measures regarding minors' access to platforms that operate with opaque and non-transparent algorithms , in line with lawsuits being filed in US courts. This law is part of a broader package that includes the Organic Law for the Proper Use and Governance of Artificial Intelligence and the new Law on the Right to Honor.
The trial against Meta in Oakland will not only determine the company's future, but could also set a global precedent for how social media platforms should operate with younger users. Regulatory and legal pressure is intensifying on both sides of the Atlantic , and major tech companies are closely watching a case that could forever redefine the relationship between digital platforms and children. With more than 10.000 individual lawsuits pending and an increasingly sensitive public opinion, the outcome of this trial will mark a turning point for the industry, as governments around the world seek solutions to protect minors without stifling technological innovation.