The trial accusing Meta of creating addictive platforms for young users began in a federal court in California on Wednesday. Jury selection started in Oakland, where multiple lawsuits from attorneys general nationwide were consolidated.
Filed in 2023, the lawsuits claim that Facebook and Instagram, both owned by Meta, were deliberately designed to encourage excessive use among teens and young children. Meta is also accused of misleading the public regarding mental and physical health risks and collecting data from users under 13 without parental consent.
“Meta has harnessed powerful technologies to entice, engage and ensnare youth and teens,” states the complaint. It adds that the company was aware of the harm caused to young users yet chose to manipulate its most vulnerable consumers.
This trial involves four states—California, Colorado, Kentucky, and New Jersey—of the original twenty-nine that filed the complaint.
A Meta spokesperson responded to the allegations by affirming their commitment to supporting young people. They mentioned collaboration with parents, experts, and conducting in-depth research on youth issues. Meta expressed confidence in showing their efforts to improve.
The appeals court recently denied Meta’s request to dismiss the case. Court decisions also upheld numerous other online safety lawsuits against Meta and TikTok, rejecting their early appeals.
For more information, read the full report at TheHill.com.
Essential Policy Reads
Policies are significantly influencing the tech sector. Representative Alexandria Ocasio-Cortez has emerged ahead of California Governor Gavin Newsom in early prediction-market odds for the 2028 Democratic presidential race, according to Polymarket.
The New York City Council is investigating four prediction markets for possibly targeting young people through aggressive marketing. The Council’s investigation includes Polymarket, Kalshi, Coinbase, and Gemini Titan. Council Speaker Julie Menin initiated this action.
The Federal Trade Commission announced it will disburse $23.8 million in payments as part of a lawsuit against Grubhub. The company allegedly deceived users with hidden fees.
President Trump’s media company is facing a lawsuit for selling early access to his Truth Social posts. The lawsuit, initiated by The Intercept and the Freedom of the Press Foundation, claims this product violates the First Amendment.
The Refresh
Significant shifts are evident in the tech world:
- Google’s new AI leader faces challenges to compete with OpenAI and Anthropic.
- AI stocks contribute to a potential Wall Street record rise as inflation concerns slightly diminish.
- A Third Way memo emphasizes communities need not compromise on economic growth while hosting data centers. Policies should ensure local benefits from data center developments.
The memo advises engagement with communities for shared benefits like stronger local budgets and job opportunities. Instead of moratoriums, communities should seek meaningful development protections while accommodating data centers.
Crypto Corner
Paramount’s tentative departure from California highlights ongoing antitrust scrutiny. Paramount Skydance’s chief legal officer indicated possible relocation due to increased state government pressures.
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