A New Mexico court has ordered Meta, the parent company of Instagram and Facebook, to pay $567 million and make sweeping changes to how its platforms treat young users, after a judge ruled the company's products had created a "public nuisance" that endangered children.
How We Got Here
The ruling is the second phase of a case that began with a jury verdict in March, when Meta was found liable for knowingly harming children's mental health and concealing what it knew about child sexual exploitation on its platforms — a verdict that came with a $375 million penalty. This latest ruling adds $567 million on top of that, bringing Meta's total penalty in the case to $942 million.
Where the Money Goes
The bulk of the fund, $420 million, is earmarked for treatment services for young people affected by platform-related harms. The remainder will fund awareness and prevention programs, screening services, and related costs over the next five years.
What Meta Is Being Forced to Change
Judge Bryan Biedscheid didn't stop at a financial penalty. He specifically called out features like autoplay, infinite scrolling, "like" counts, push notifications, and algorithmic recommendations as designed to capture and hold teenage attention. As a result, Meta has been ordered to:
- Cap usage for users under 18 at 90 hours a month, roughly 3 hours a day
- Limit push notifications to minors
- Block adults from messaging teens they don't already know
- Stop recommending children's accounts to adult users
- Reduce nudity in messages sent to and from minors
Meta's Response
Meta has said it will appeal, with a company spokesperson stating they work hard to keep people safe and remain confident in their record protecting teens online.
Why It's a Bigger Deal Than the Number Suggests
The judge's public nuisance finding is notable — it's the first time a U.S. court has ruled a social media company created a public nuisance, a legal category more commonly applied to things like industrial pollution. New Mexico's Attorney General called the ruling "a blueprint" other states and countries could follow, and dozens of other states are pursuing similar lawsuits, including a major trial set to open in California.
Worth noting for perspective: $942 million, while a record-setting penalty in this space, amounts to a small fraction of Meta's roughly $60 billion in annual profit — a gap several commentators have pointed to when questioning how much a fine like this actually changes company behavior versus how much the mandated feature changes will.
