A New Mexico judge has ordered Meta to pay a record $942 million in penalties after ruling that the social media giant failed to adequately protect children from harmful content and online predators on its platforms.
The latest judgment includes a $567 million penalty handed down on Thursday, in addition to an earlier $375 million award, bringing the total amount Meta has been ordered to pay in the case to $942 million.
Judge Bryan Biedscheid ruled that Meta’s platforms constituted a “public nuisance”, comparing the company’s operations to a factory whose “pollution” spreads beyond its walls.
He said the psychological harm and sexual exploitation suffered by children as a result of the company’s platforms had become a widespread societal problem affecting families, schools, hospitals and law enforcement.
“The harmful effects of Meta’s platforms on children do not stay contained by its platforms,” the judge wrote, adding that the impact extends into communities and creates a broader public burden.
The ruling follows a lawsuit filed by the State of New Mexico in 2023, accusing Meta of exposing children to sexually explicit material and allowing them to come into contact with sexual predators through its recommendation algorithms.
During the first phase of the trial, the court found that Meta had repeatedly violated New Mexico’s consumer protection laws by using algorithms that directed young users toward harmful content and inappropriate contacts.
In the second phase, the judge concluded that the company’s conduct amounted to a public nuisance, marking what is believed to be the first time a social media company has been legally classified in that way.
The court ordered that the newly imposed $567 million be placed into a special fund dedicated to addressing the harms caused by social media to children.
According to the order, approximately $420 million of the fund will support mental health treatment and behavioural health programmes for affected children.
The remaining funds will finance prevention efforts, including training for teachers, healthcare professionals and other experts to better recognise and respond to social media-related harms.
Beyond the financial penalties, the court also directed Meta to implement a series of measures designed to strengthen child safety across its platforms.
Among the requirements, Meta must ensure that accounts belonging to users under the age of 18 are not recommended to adults and prevent adults from sending direct messages to minors.
The company has also been ordered to prohibit the sending and receiving of nude images by underage users and introduce a “one-strike” policy permanently banning adults who engage in child sexual exploitation.
The ruling further requires Meta to remove public “like” counts for users under 18, disable push notifications between 10:00 p.m. and 7:00 a.m., and also during school hours on weekdays.
In addition, teenage users must be limited to a maximum of 90 cumulative hours per month across Facebook and Instagram, equivalent to roughly three hours per day.
Meta said it strongly disagrees with the ruling and intends to challenge the decision.
“We disagree with the ruling and will appeal,” a company spokesperson said.
The company maintained that it has invested heavily in safety measures and continues to improve protections for young users.
“We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content. We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts,” the spokesperson added.
The New Mexico judgment adds to Meta’s growing legal challenges over child safety. The company is currently facing thousands of lawsuits across the United States alleging that its platforms contribute to addiction and harm among young users.
Earlier this year, Meta also lost a significant case in Los Angeles, where a court ruled that the company could be held liable for designing addictive social media platforms.
Despite the mounting legal pressure, the financial penalties remain relatively small compared to Meta’s earnings.
The company recently reported $61 billion in revenue between April and June, representing a 28 percent increase over the same period last year.
Technology analysts, however, say the latest judgment could have implications beyond the United States, potentially encouraging regulators and courts in other countries to pursue tougher action against major social media companies over child safety.
The legal scrutiny is set to continue next week when another major trial begins in California.
Nearly three dozen U.S. state attorneys general are seeking to hold Meta accountable for alleged violations of child privacy laws, adding further pressure on the parent company of Facebook, Instagram, WhatsApp and Threads.
SOURCE: BBC