US states demand $1.4 trillion in penalties from Meta

Meta Platforms disclosed that four U.S. states are seeking approximately $1.4 trillion in penalties from the company, a figure nearly equal to its market capitalization. The demand stems from a lawsuit alleging that Meta intentionally designed Facebook and Instagram to be addictive for younger users and misled the public about the platforms' safety.

The states-California, Colorado, Kentucky, and New Jersey-revealed their calculation method in a June court hearing, though their detailed filings remain sealed. They propose multiplying the number of alleged violations by the maximum fine amounts allowed under state law, with the number of violations based on estimates of teens and young users affected by Meta's conduct. Meta disclosed the $1.4 trillion figure in a court filing on Monday, July 6, ahead of a scheduled trial in Oakland, California this August. The company argued the amount is unsupported by evidence and unprecedented, stating that "a sanction of that size has no analog in the history of consumer protection enforcement."

The August trial, presided over by U.S. District Judge Yvonne Gonzalez Rogers, will address claims from the four states under their consumer...