Is this Big Tech’s Big Tobacco moment?

This week saw what could prove to be an historic reckoning for Big Tech when a Californian court ruled that Meta and Google’s YouTube intentionally built addictive social media platforms. This came just a day after a jury in New Mexico found Meta liable for the way its platforms endanger children.

Critics are calling this “Big Tech’s Big Tobacco moment”, a reference to how cigarette makers in the 1990s had to overhaul their businesses after courts ruled that their products were addictive and harmful.

Meta and Google have invested heavily in safety tools for younger users and both companies dispute claims that their platforms are to blame for children’s mental health issues. But the verdicts this week are a “sombre moment for Silicon Valley and the implications are global”, said the BBC’s technology editor Zoe Kleinman.

What did the commentators say?

The cases this week are “the first of about 22 ‘bellwether’ trials”, said Stephen Armstrong in The Independent, brought by more than 350 families across 250 US school districts and are “expected to trigger thousands more”. It is like the “anti-tobacco legal actions on fast-forward”.

Judgments of responsibility “in cases like the one brought against Meta and YouTube are necessarily complex”, said academic and author Austin Sarat in The Guardian. And critics of the judgment in this case “will no doubt howl about greedy plaintiffs looking to make a haul from deep-pocketed defendants”. But it does seem “clear that companies knew of the addictive qualities of their sites and the potential damage to young people”.

For years, “technology giants successfully fought off efforts by regulators, lawmakers and others to put limits on their social media businesses”, said Andrew Ross Sorkin in The New York Times. The tide appears to be turning but so far “investors don’t seem to be fazed”, with Big Tech share prices only dipping slightly. The potential penalties too – $6 million for Meta and YouTube in California, and $375 million for Meta in New Mexico – “are a fraction of their immense profits”.

It’s for that reason that social media companies might not fret too much too soon. “The Big Tech firms are losing nearly every time,” Tom Smith, partner at legal firm Geradin, told The Independent. “But they have effectively unlimited legal budgets, and their calculation may be that as long as you can make sure these cases take a decade, then the extra profits will outweigh the damages.”

What next?

Meta and YouTube plan to appeal, but if unsuccessful “they could be forced to remove the features that make their platforms addictive, which would upend their business models and fundamentally alter the experience of users”, said Fred Harter in The Observer.

Regardless of whether Meta or Google appeal the decision, “this is going to redefine the landscape,” said the BBC’s Kleinman. “It could even be the beginning of the end of the social media era as we know it.”