Florida Demands Meta Limit Teen Screen Time

Florida's attorney general has requested a temporary injunction against Meta Platforms, seeking significant changes to how the social media giant operates within the state. The motion, filed on Wednesday, demands that Meta identify and remove users under 14 from its platforms. It also seeks to limit all teen users in Florida to a maximum of two hours of daily use across all Meta applications.

Furthermore, the injunction request includes disabling features such as autoplay and infinite scroll for minors in Florida. The state's legal action is based on Florida's deceptive trade practices law and does not involve the state's social media age law. This move comes as Florida notably rejected a substantial youth-safety settlement valued at up to approximately $18 billion, which nearly every other state and Washington, D.C., had accepted.

Meta's shares experienced a slight decline during the session following the news. The potential impact on Meta's revenue could be substantial, given that advertising constitutes the vast majority of its quarterly earnings. The attorney general has publicly stated the aim is to compel Meta to disable features that contribute to teen addiction, criticizing the rejected settlement as insufficient.

Meta, in response, suggested that Florida's attorney general should focus on other platforms like YouTube and TikTok. They expressed regret that state resources were being used for what they described as a "meritless preliminary injunction." The company also argued that Florida's delay in seeking such an injunction weakens the claim of urgent harm.

The situation highlights a broader legal battle involving Meta and various states over teen online safety. While Florida's case is still in its preliminary stages, another state, New Mexico, has already secured a jury verdict against Meta and is awaiting a ruling on penalties that could range from $35 billion to $40 billion. This contrasts with Meta's proposed cap of $3.45 billion for that penalty.

Analysts are closely watching these regulatory actions, with some viewing them primarily as potential fines rather than forced product modifications. The outcome of the New Mexico ruling and Florida's injunction request could significantly influence investor sentiment and Meta's stock performance, especially considering the company's current valuation reflects substantial legal risks.