Meta faces ‘astronomical’ consequences as legal fight reaches critical moment in California - CNBC

California Attorney General Rob Bonta begins opening arguments Tuesday in a federal trial in Oakland, co-leading a coalition case against Meta over allegations the company fostered addictive behavior in children and teens.
The lawsuit, brought in 2023, involves 29 state attorneys general and will be argued by lawyers representing California, Colorado, New Jersey and Kentucky, citing alleged violations of laws including the Children's Online Privacy Protection Act (COPPA) and consumer protection statutes.
The trial follows Meta's recent loss in New Mexico, where the company must make service changes and pay nearly $1 billion; New Mexico AG Raúl Torrez warned Meta could face an "astronomical" judgment in California.
Experts describe the litigation as social media's "Big Tobacco" moment, comparing it to the 1990s cases in which tobacco companies paid billions and saw their influence sharply reduced.
States are seeking to force design changes to Facebook and Instagram, and a negative outcome in Meta's home state could bring steeper penalties, including a broader overhaul requiring fundamental changes to key algorithms.
Julia Powles of the UCLA Institute for Technology, Law and Policy said California "matters more than any other jurisdiction in the U.S.," noting it is where Meta faces the greatest legal reach.