A court in the US state of New Mexico has ruled that Meta must pay 567 million US dollars over the psychological harm suffered by children, marking a significant development in legal efforts to hold social media companies accountable for the impact of their platforms on young users. The judgment requires the company to finance a fund supporting minors harmed through online consumption and introduces sweeping changes to the way Meta’s platforms operate for young people in the state. The decision follows an earlier ruling that found the company had misrepresented the safety of Facebook and Instagram for younger users, and the case is being closely watched across the United States as similar lawsuits seek broader reforms throughout the social media industry.
A court in the US state of New Mexico has ruled that Meta, the parent company of Facebook, Instagram and WhatsApp, must pay 567 million US dollars after finding the company liable for psychological harm caused to children. The money will be used to establish a fund supporting minors who have suffered harm through online consumption, representing one of the most consequential financial penalties imposed in a case centred on the protection of young users in the digital environment.
Meta has announced that it will appeal the decision, maintaining that it rejects the court’s conclusions. In a statement, the company said: “We remain convinced that we have a good track record in protecting young people on the internet, and we will continue to defend ourselves against allegations that misrepresent the facts.”
The ruling was delivered by Judge Bryan Biedscheid, who held the company behind Facebook, Instagram and WhatsApp responsible for what he described as a “public nuisance”. Beyond the substantial financial penalty, the judgment also requires Meta to redesign aspects of its platforms for minors within New Mexico, signalling that the court considered structural changes to the services necessary alongside monetary compensation.
The court’s five-year order introduces a series of measures intended to alter how young people use Facebook and Instagram in the state. Among the requirements are monthly limits on the amount of time teenagers may spend on the platforms, restrictions affecting notifications, and stricter controls governing contact between adults and minors. Together, these measures are designed to reshape the online experience for younger users by placing greater limits on engagement and strengthening safeguards around interactions with adults.
The latest judgment represents the second phase of a broader legal case examining whether Meta’s platforms constitute a danger to the public under the laws of New Mexico. Rather than focusing solely on compensation, the proceedings have also examined the wider legal responsibilities of a social media company whose services are used extensively by children and teenagers.
This latest financial penalty follows an earlier decision in the same case. In March, a jury concluded that Meta had violated New Mexico’s consumer protection law by misleading users about the safety of Facebook and Instagram for young people. That verdict resulted in the company being ordered to pay 375 million US dollars in damages, adding to the legal and financial consequences arising from the proceedings.
Taken together, the two rulings mark successive stages in a single legal process that has steadily increased pressure on the technology company. The earlier finding addressed the way the safety of its platforms had been presented to consumers, while the latest decision extends the consequences by imposing additional financial liability and requiring operational changes affecting minors in New Mexico.
The case has attracted close attention across the United States because its implications extend beyond a single state. Other US states, municipalities and school districts have launched similar lawsuits seeking changes across the social media industry. Those cases similarly aim to compel technology companies to modify the design and operation of their platforms, particularly where the wellbeing of children and adolescents is concerned.
As a result, the New Mexico proceedings have become a closely watched legal benchmark in a wider series of actions targeting the practices of major social media companies. The latest judgment combines substantial financial penalties with mandatory operational reforms, illustrating how courts may seek both compensation for alleged harm and structural changes intended to alter platform design for younger users.
Meta’s appeal ensures that the legal dispute is not yet concluded. Nevertheless, the decision represents a significant milestone in the New Mexico proceedings, reinforcing the state’s position that the company bears responsibility for protecting minors using its services. With the establishment of a fund for affected children, the requirement to implement new safeguards for young users over the next five years, and the backdrop of an earlier 375 million US dollar damages award, the case continues to draw nationwide attention as governments and public institutions pursue similar legal challenges aimed at reshaping standards across the social media sector.
