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The California suit could impose nationwide injunctive relief and substantial penalties, potentially altering Meta's algorithm designs, age-verification requirements, and data handling. Large damages or costly settlements would raise compliance costs and could constrain AI capex financing, pressuring near-term sentiment and equity value.
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Opening arguments in California's COPPA case against Meta could push nationwide changes to age verification and under-13 policies. The coalition seeks injunctive relief and potential data deletions for under-13 users, risking broader algorithm and design changes that could elevate compliance costs and alter AI‑spending dynamics.
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