Meta to pay nearly $1 billion to address harm caused to children by social networks

A judge in New Mexico has ordered Meta Platforms to pay more than $900 million and limit the amount of time young people in the state can spend on its apps. This significantly increases the costs the company will bear following the landmark ruling on child safety against the parent company of Facebook and Instagram.

The judge ruled on Thursday that Meta must establish a new $567 million fund to address damages, in addition to the $375 million in civil penalties already imposed by a jury. The company is also required to implement certain safety measures, including limiting the time that minor users in the state can spend on Facebook and Instagram, hiding the number of "likes" on photos by default for these users, and displaying information to users in the state about the risks associated with using its platforms.

The establishment of the fund, intended to remedy the harm caused by the social media apps of Facebook's parent company, was "necessary due to the extensive scope of the harm and the complex nature of addressing it," said state judge Brian Biedscheid. The fund amount is slightly lower than the $779.5 million requested by attorneys on behalf of the state.

Meta stated that it disagrees with the ruling and intends to appeal it.

"We are confident in our work to protect teens online, and we will continue to defend ourselves against claims that misrepresent the facts," a company spokesperson said.

The ruling on Thursday stems from a lawsuit filed by New Mexico Attorney General Raúl Torrez, in which he accused the company of allowing young users to be exposed to sexually explicit content and to become easy targets for sexual predators on the apps. A jury determined in March that Meta knowingly violated the state's consumer protection laws.

"New Mexico has led the way in court," Torrez said in a statement. "Now, other states in the U.S. and other countries around the world facing the same crisis have a roadmap they can use."

A trillion-dollar lawsuit

Meta is facing thousands of lawsuits from U.S. state attorneys general, school districts, and private plaintiffs, who argue that the company prioritized growth over the safety of minor users. The case in New Mexico was the first to examine the question of whether social media companies should be held liable for content posted on their platforms.

In the next trial, which follows a lawsuit filed by the attorneys general of four states, jury selection will begin next week in Oakland, California. Meta stated in a court filing that the states in the case are seeking damages of more than $1 trillion.

Earlier this year, a jury in Los Angeles determined that Meta and YouTube bear responsibility in the case of a young woman who claimed that excessive use of their products caused her mental health issues. Last week, Meta reported that legal proceedings in the second quarter alone cost it $2.4 billion.