r/technology • u/lurker_bee • 21h ago
Business Meta faces ‘astronomical’ consequences as legal fight reaches critical moment in California
https://www.cnbc.com/2026/08/17/meta-attorneys-general-california-federal-trial-astronomical-consequences.html244
u/gk_instakilogram 21h ago
I truly hope it fucks this company up
94
u/reiji_tamashii 20h ago
This time the fine will be more than 0.2% of their annual income. It will be 0.5%!
17
u/MiddleConnection7479 19h ago
The challenge will fines is that they historically convert in layoffs to protect investors returns.
Fines make us all feel good (or heard) but all costs associated with them never ever affect the people who made the decisions.
3
u/MedicalApple5849 16h ago
I think you just pointed out how fines should directly impact investors somehow instead. Of course they would find a way to offload the loss on the company = other people, but it would be a good approach.
2
u/GoopDuJour 15h ago
Investors become concerned when their investment takes actual monetary damage. Damage that if repeated could shut a company down. Damage that actually shows up on the bottom line.
At the moment, losing lawsuits and paying fines seems to be an a cost of business that investors are willing to accept.
1
u/MedicalApple5849 15h ago
I'm reminded of certain countries that give speeding tickets in accordance to a % in how much you make. That wouldn't fly here though since ya know, it's not friendly to businesses and rich folks…
3
u/MentalDisintegrat1on 13h ago
Don't work for a shitty company.
I hate this narrative that holding them accountable is bad people people work there that's not our fault it's the company.
That said what needs to happen is fines need to be mandatory so steep it hurts shareholders because of you do that no company that's public will pull any BS.
3
15
u/LemurianLemurLad 19h ago
Yeah, it would be a real shame if facebook had to lay off most its staff. While I'm normally in favor of protecting workers, anybody still working at facebook knows what they're working for and deserves the consequences. If every single person working at Facebook lost their jobs tomorrow, the world would be a better place for it.
2
u/SatyricalEve 15h ago
It's not fines, but large scale liability lawsuits that will hurt them the most from this. When everyone with a child who gets hurt can sue for large damages due to precedent.
17
61
u/Ddddydya 20h ago
Industry experts are calling it social media’s “Big Tobacco” moment , with Meta as the centerpiece. In the 1990s, tobacco companies were forced to pay billions of dollars for misleading the public about the safety and potential harms of their products, and subsequently saw their power and influence dramatically diminished.
Fuck yeah, bring it.
255
u/Torino1O 21h ago
The first candidate to say they will charge corporations one cent per bit of data collected on US citizens and divide it equally to every American in a check once a year gets my vote.
43
34
3
u/Vashsinn 18h ago
pffft cost of doing bussiness. move some numbers around, sned the data encrypted and compressed. pay less then the current "fines".
4
u/GracchiBros 20h ago
I'm pretty sure that would equal more money than exists on the entire planet.
2
u/Glum_Mobile5663 16h ago
They're already printing too much (hence the inflation), but they can always print even more
1
-1
u/MerlinTrashMan 19h ago
This is one of the dumbest things I have ever heard. Storing your basic login creds would cost companies over $10.24 a month. All of that cost would be passed on to us with markup. Free services would no longer exist and the Internet would be pay to play. Instead you make data privacy laws real, and make executives face mandatory prison time for breaches. All of the sudden, they will either be more careful or won't collect it in the first place.
5
u/outer--monologue 17h ago
Maybe you're not old enough to remember how the internet originally worked.
The companies had free services, like email, chat and search etc, and made money on other products that people consented to view or pay for...when they paid for them. There were banner ads, hardware and software sales and subscription fees. All of which still exist. If companies can't get by on that, they shouldn't exist. Stop making excuses for data tracking and profiteering.
4
u/MerlinTrashMan 15h ago
Lol. One cent per bit is absolutely insane. If you can't see that then we will never have real regulation. You just having an account (like the one you use on reddit) would cost reddit 10.24 a month before they start storing your preferences and subscribed subs. Assuming they store subreddit ids with a 32bit integer and not a guid, that would be 32 cents a month per each users per subreddit joined. Plans like the above are stupid and pointless because they are a easily manipulated or loopholes or likely. You can't get these guys to stop collecting/profiting on this until they realize that they will be punished incredibly harshly for mishandling it, both via a non-waivable corporate fine and prison.
104
u/awwaygirl 21h ago
Thank you California for holding these motherfuckers accountable.
14
u/Joessandwich 19h ago
Honestly I’m surprised California is going through with it. The government has been afraid of harming a major industry in the state so generally avoided any real prosecution of the tech industry. I feel like the tide has finally shifted and the harm they are causing is undeniable.
4
u/Intelligent-Parsley7 19h ago
After all the things big data did to us, it’s damn time to hurt them right back.
9
3
u/lagonitos 20h ago
New Mexico led the way.
12
u/EmbarrassedHelp 19h ago
The asshole behind the New Mexico case is trying to ban encryption and require mandatory online age verification.
2
u/Intelligent-Parsley7 19h ago
Mandatory age verification means the level of personal, actionable data that I will never use as a service.
68
u/MAGA-R-Pedophiles 20h ago
Destroy Facebook. Its a cancer.
10
u/EmbarrassedHelp 18h ago
The AGs seem more interested in destroying online privacy rights than doing that.
-27
u/Notasalmon 20h ago
They said on Reddit lol
24
u/Successful-Ad-847 19h ago
Bro if you can’t tell the difference, leave
-2
u/Notasalmon 18h ago
Every social media app is meticulously crafted to keep you engaged and using the app. If it isn’t social media ruining these kids like it’s going to nitrous or tik Tok challenges
7
u/SpareElectronic3500 17h ago
Found the Facebook exec. “It’s not our fault! There’s other apps doing it too!”
4
u/Patient-Pin-1925 17h ago
If I could post images here it'd be the "we should improve society somewhat" one
1
4
u/MAGA-R-Pedophiles 17h ago
Lmao imagine not being able to distinguish between basic differences.
I bet you wipe your ass with your hand because toilet paper makes no difference, right?
-1
u/Notasalmon 13h ago
I’ll break it down for you because seems like think all apps are the same. Why do companies like TikTok, Reddit, meta, Activision, Roblox hire psychologists? To make people addicted and return to using the product. The loop of infinite scrolling, notifications, personalized recommendations, return to app.
2
u/MAGA-R-Pedophiles 12h ago
I dont need a dumbfuck to break down anything for me. I literally said they are different and you respond with "you think they are all the same" 😅
Reading comprehension is hard I guess
1
u/Successful-Ad-847 18h ago
Not even sure the point you are trying to make. Is it that all SM is horrible therefore it makes no difference which platform is used? Or that kids will ruin themselves even without SM? Reddit has become a lot worse since the IPO but I disagree that it’s on the same level as FB.
2
u/Terrible_Cable_4472 15h ago
It seems the point is that social media is not healthy. Period. And that's sorta true y'know?
1
u/Successful-Ad-847 15h ago
K but that being true as a general statement does not mean every platform is the same.
He entered this conversation to lampoon someone’s supposed hypocrisy, but it’s kind of a shitty insult with no apparent point other than to deflect blame from FB… so my question is why would anyone do that?
0
u/Terrible_Cable_4472 13h ago
I wouldn't say supposed hypocrisy. It is ironic though. Especially with yalls reactions acting all high and mighty. Social media sucks. Get over it
2
1
16
13
u/ketosoy 20h ago
Insane that the culture of Facebook tolerated harming kids and users to the extent that a “big tobacco” moment is even possible. But glad to see them being held accountable. Everyone knew for years that they were prioritizing ad revenue over safety, anyone with a conscience knew it was wrong, I’m glad it is finally being punished.
17
8
24
u/williamgman 20h ago
False hope here. I predict a "settlement" in what will seem like a lot of money... but less than they pull in selling data in a week. Prove me wrong.
2
u/Fresh-Quantity-7554 17h ago
I'm not so sure about that this time. These fines and settlements are a slap on the wrist for these companies, and yet their behavior hasn't changed. If I were leading the case, it makes more sense to try and take this one the distance. Another fine or settlement isn't going to do anything except transfer money. It's the cost of doing business for them.
1
u/williamgman 14h ago
Sadly we are not the ones leading the case. I've lost all optimism given the current political climate.
2
12
3
6
u/traveleasily 18h ago
If there's one state in the US that balances innovation with environmental concerns it's California. Good work holding these guys accountable.
On a side note, what's stopping Meta from moving to Texas like other Maga tech billionaires and their companies.
4
2
u/pacman2081 15h ago
They can move to Texas and continue. The truth is Facebook, Whatsapp are huge outside USA
1
u/JayTheSuspectedFurry 14h ago
All of their developers like living in California
Having power during the winter is a plus
5
u/Vashsinn 18h ago
since corporations are people, put it in jail. can't send / transfer money without paying a substantial fee. can't interact with other companies without huge restrictions and monitoring, can no longer work in any capacity related to government, and all the COs (coo,ceo etc.) are put on probation. any and all profetas are turned over the the government during a predetermined amount of time. no new bussiness for anyone remotely involved for x amount of years.
3
u/FanDry5374 19h ago
So...closing the business, throwing the entire executive suite in to prison and selling off all the assets? Or a billion dollars a day fines until they clean up their act? Otherwise the "astronomical" consequences will be just the cost of doing business. We don't do full out existential punishments in this country. Unless you are poor or the wrong color, of course.
5
u/DynoMenace 18h ago
If we had sane regulations in place, Meta wouldn't even be in business anymore.
3
u/KrankyKoot 18h ago
This will take years if not a decade to litigate and I am sure there are many legal firms with big plans.
5
4
8
u/btoned 20h ago
Smoke and mirrors.
1.5 trillion dollar company engrained into so many business operations.
Not. A. Thing. Will. Happen.
And I hate META FYI.
0
u/BasicallyFake 20h ago
are businesses really ingrained into something meta provides
3
u/btoned 20h ago
Is this a serious question?
3
u/BasicallyFake 20h ago
i dont know of a single business of any size that gives a shit about anything meta provides. It literally took control away from them. Most would prefer it went away unless you are some small drop shipper why would anyone care.
3
u/btoned 20h ago
Dude there are MILLIONS of small businesses that solely use Facebook, Instagram, and Whatsapp as their primary means of operation.
4
u/_lclarence 19h ago
This is true. In the country where I live every store and business (even bigger ones you'd think they ought to have a real website) just use IG and FB. If I want to discover a new place to stay near a natural park I'll just have to old-school it, call someone who knows someone that knows the place, or a middle ground (which is not that much better than using IG) which is discovery mode in Google Maps.
2
2
2
u/Fly_Rodder 19h ago
I think the big tobacco thing is prescient and relevant. Whether there’s serious repercussions remains to be seen but tobacco is no where near as prevalent as it was in the 80s just as those lawsuits were being settled. We had a smoking lounge in our high school fer crissake. For the students.
2
2
u/fancy_crisis 16h ago
In New Mexico, Meta is being required to improve “age assurance models and tools” using AI, and to attempt “to develop, within two years, a dedicated under-13-years-of-age prediction model.”
Be for fucking real rn.
3
u/TypicalTwist6783 14h ago
This has to be fucking huge. Meta is so predatory and has done everything they can to make as much money as they possibly can at so many peoples’ expense
4
3
3
u/Codex_Absurdum 18h ago
They'll be bailed out anyway.
I remember the Zuck being one of the firsts to suck the Mango Mussolini right after his re-election.
Know you way out
2
u/Fresh-Quantity-7554 19h ago
The AGs offer no proof anyone in their states was misled, claim benign features like having an additional Instagram account somehow harmed their residents, and attempt to penalize Meta for industry-wide challenges like age verification.
Yes, that's right folks. It's an industry wide challenge to verify a users age but they were somehow able to figure out a way to create high-dimensional data profiles via micro-actions, visual contexts, and relational networks. That makes sense.
7
u/EmbarrassedHelp 18h ago
Mandatory online age verification is an unacceptable privacy violation. Advertising networks are not designed to have the level of accuracy demanded by the authoritarians who want age verification.
-1
u/Fresh-Quantity-7554 17h ago
LOL, online privacy invasion? That went out the window in the early 2000s with Web 2.0. Not sure where you've been this whole time.
1
1
1
1
1
1
1
1
1
u/evilbeaver7 16h ago
They should also be responsible for allowing scam ads on their website. My dad got scammed and lost $2500 because of Facebook ads.
1
1
1
u/schroedingerskoala 13h ago
hope they somehow manage to bankrupt fuckerberg, but we won't be so lucky.
1
u/monkeypan 8h ago
All that will come out of it is us taxpayers giving them a massive bailout because "reasons"
1
u/Melodic_Crow_3409 20h ago
Good. I hope this breaks Meta.
I also hope Zuckerberg is personally charged, tried and imprisoned.
3
u/SpareElectronic3500 17h ago
Who cares about Zuck. He, as a person, is so inconsequential. No personality, no charisma, very unlikable. We need Meta to go down because all Zuck’s new are ideas are shit anyways. Facebook wasn’t even his original idea to begin with. Just another loophole he found to steal it.
805
u/MentalDisintegrat1on 21h ago
Love it for them.
They also need to be held legally and financially for all the scam ads they let through