Meta faces $200B–$1.4T child privacy trial in California

Meta is entering what may be its most consequential legal challenge to date. The trial consolidates enforcement action by 29 states rather than isolated regional suits, amplifying both pressure and stakes. New Mexico's separate victory against Meta—which yielded nearly $1 billion in damages—signals that state attorneys general have traction against the company on child-protection grounds. The penalty range reflects deep disagreement: Meta's characterization of $1.4 trillion suggests the states are demanding damages the company deems extreme, while the states' counter that $200 billion is the true ask signals a still-massive exposure. The threat to Meta's core business model is tangible. The company's recommendation algorithms are engineered to maximize user engagement and, by extension, ad impressions and revenue. A court order to materially alter those systems could reshape how Instagram and Facebook operate, directly threatening the engagement metrics that underpin Meta's advertising model.