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Meta confronts ‘astronomical’ consequences as legal fight reaches critical moment in California
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If New Mexico created the blueprint for taking on Meta, California could determine the company's fate when it comes to critical changes at Facebook and Instagram.
Key facts
- New Mexico AG Raul Torrez, fresh off his court victory, told CNBC that the consequences could be "astronomical" for a company that gets 98% of its revenue from online advertising
- The trial involves a coalition of 29 state attorneys general in a unified case against Meta that was brought in 2023, and will be argued by lawyers representing California, Colorado, New Jersey
- Earlier this month, Meta lost a case in New Mexico that will require the company to make some changes to its services and pay nearly $1 billion
- The judge in New Mexico ordered Meta to pay $567 million into an abatement fund as part of a second phase of a case involving child sexual exploitation allegations
Summary
Opening arguments begin Tuesday in the trial that California Attorney General Rob Bonta is co-leading against Meta, following a litany of allegations that the company fostered addictive behavior in teens and children. The trial involves a coalition of 29 state attorneys general in a unified case against Meta that was brought in 2023, and will be argued by lawyers representing California, Colorado, New Jersey and Kentucky. Industry experts are calling it social media's "Big Tobacco" moment, with Meta as the centerpiece. Earlier this month, Meta lost a case in New Mexico that will require the company to make some changes to its services and pay nearly $1 billion.