Tech

Meta ordered to pay $567 million in New Mexico public nuisance ruling

Second phase of child safety case brings total penalties to $942 million, with funds directed to an abatement fund for awareness and treatment services.

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Owen Mercer
Markets and Finance Editor
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Source: The Verge · original
Meta ordered to pay an additional $567 million in public nuisance ruling
Santa Fe district court designates social media giant a significant contributing cause of teen mental health crisis

A Santa Fe district court has ordered Meta to pay an additional $567 million in the second phase of New Mexico’s child safety case, bringing the company’s total financial liability to $942 million. The ruling, published on Thursday by US District Judge Bryan Biedscheid, designated Meta’s platforms as a public nuisance, finding them to be a significant contributing cause of a teen mental health crisis affecting public health and safety in the state.

The legal designation of public nuisance is typically associated with industrial entities causing environmental harm, such as factories emitting air pollution. This marks the first time a social media company has been deemed a public nuisance in this specific context. The court found that Meta’s platforms contributed to a crisis impacting young people across New Mexico, leading to the imposition of the second-phase penalty following a previous $375 million penalty ordered in the first phase of the case.

The $567 million will be deposited into an abatement fund dedicated to financing awareness, prevention, screening, and treatment services for those harmed by the company’s platforms. New Mexico Attorney General Raul Torrez described the decision as a victory for parents and children, stating that the case was about ensuring that a major technology company cannot profit from practices endangering young people without consequence.

The case stems from a 2023 lawsuit filed by New Mexico state attorneys, who alleged that Meta’s recommendation algorithms directed young users toward harmful content and contacts with sexual predators. The lawsuit argued that the company failed to warn the public about the dangers its platforms posed to children, a claim the court has now substantiated through the public nuisance ruling.

Meta has stated it disagrees with the decision and plans to appeal. Spokesperson Andy Stone issued a statement defending the company’s safety record, asserting that Meta works hard to keep people safe and remains confident in its efforts to identify and remove harmful content. The company argued that the allegations misrepresent the facts and that its safety efforts have been transparent.

Former Twitter European vice president Bruce Daisley commented on the fine, describing it as a drop in the ocean relative to Meta’s overall revenue. The outcome of Meta’s planned appeal remains unknown, as does the long-term impact of the abatement fund on teen mental health outcomes in New Mexico.

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