Meta is facing a US federal trial brought by 29 state attorneys general, who accuse Facebook and Instagram of encouraging compulsive use among young people and collecting data on minors. If the states win, the court could require structural changes to the platforms and impose damages the coalition says could reach $200bn; Meta has said potential state penalties could be as high as $1.4 trillion.
Opening statements began on Tuesday, and the trial is expected to last as long as six weeks. Meta denies the allegations and says it has created strong protections for teenagers.
What the states are asking the court to do
The case targets design features including infinite scrolling, which lets users continuously view new posts. The states are also seeking the removal of algorithms and artificial-intelligence models made from data compiled from minors, along with measures to promote user wellbeing and impose time restrictions on the youngest users.
The potential changes matter because Meta’s advertising business depends heavily on user engagement and the number of advertisements shown on screens. Meta reported 12 percent more ad impressions in 2025 than in 2024, while the average price per advertisement increased by 9 percent.
Related coverage: Why Meta’s US trial could reshape child safety on social media.
The possible financial exposure
The states’ $200bn damages request is roughly equivalent to Meta’s revenue in 2025, when the company generated nearly $201bn in revenue and $83.2bn in operating income. Meta said state penalties could theoretically reach $1.4 trillion, although the source report said that outcome is unlikely.
The requested amount would exceed penalties in two separate New Mexico cases described in the source material: a jury ordered Meta to pay $375m in civil penalties in March, and a judge ordered another $567m earlier this month. Meta has also said in a January Securities and Exchange Commission filing that defending its lawsuits is costly and can place a significant burden on management and employees.
What Meta has done and what could follow
Meta introduced tools intended to give teenagers more control over their platform use. In January 2023, it added ways for teens to manage the types of advertisements they see on Facebook and Instagram. In June 2023, it introduced notifications after more than 20 minutes of use and options to set daily time limits. The lawsuit alleges that teenagers can dismiss the notification and continue scrolling.
More context: How a landmark court case proved Meta and Google built addictive social media platforms.
The case could influence more than the claims brought by the 29 states. Meta’s SEC filings say the company faces lawsuits from more than 100,000 parties, including individuals, cities, states and school districts across the United States. Snap, TikTok and Google’s YouTube have also faced litigation over allegations that their products encourage compulsive use by young people.
The financial pressure comes as Meta deals with losses and spending in other areas. Reality Labs, its virtual- and augmented-reality division, has lost $70bn since 2020, while cash flow fell from $12bn in the first quarter to $784m in the second quarter. The source report also described increased spending on artificial-intelligence infrastructure.
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