Meta, the parent company of Facebook and Instagram, is facing mounting legal and regulatory challenges across multiple countries. In the latest setback, a court in the US state of New Mexico has ordered the tech giant to pay $567 million (around ₹54 billion) into a fund dedicated to adolescent mental health and implement stronger protections for young users on its platforms.

The ruling comes at a time when Meta is also under scrutiny in India over questions related to its algorithms and compliance with local regulations, adding to the company's growing global legal challenges.

New Mexico Court Rules Against Meta

Judge Brian Beadshaid of the New Mexico State Court ruled in favor of Democratic Attorney General Raul Torrez, concluding that Meta had created a public nuisance through products that allegedly harmed children and teenagers.

The lawsuit accused the company of designing addictive social media features for young users and failing to adequately prevent child sexual exploitation on its platforms.

As part of the ruling, Meta has been directed to contribute $567 million toward a fund supporting the mental health of teenagers and introduce significant changes aimed at improving online safety for minors.

Follows Earlier Consumer Protection Verdict

The latest decision follows an earlier jury verdict that ordered Meta to pay $375 million in damages after finding that the company had violated consumer protection laws by allegedly misrepresenting the safety of Facebook and Instagram for young users.

The case is one of several high-profile legal actions examining the impact of social media platforms on children's mental health and online safety.

Youth Safety Measures Ordered by the Court

The court has instructed Meta to implement several measures designed to better protect minors, including:

• Monthly controls on teenagers' use of Facebook and Instagram.

• Restrictions on notifications aimed at reducing excessive engagement.

• Stronger safeguards governing interactions between adults and minors.

• Additional safety measures for AI-powered chatbots.

• Enhanced review procedures for reports involving child sexual abuse.

According to the ruling, these measures will remain in effect for five years.

Growing Legal Pressure Across the US

The New Mexico case is part of a broader wave of litigation against major social media companies in the United States.

More than 40 states and over 1,300 school districts have filed lawsuits alleging that social media platforms have contributed to public health and safety concerns involving young users. Many of these cases seek financial compensation as well as court-mandated changes to platform design and business practices.

Meta Plans to Appeal

Meta has announced that it intends to appeal the ruling.

In a statement, the company said it remains committed to protecting teenagers online and continues to invest in detecting and removing harmful content. Meta also argued that the allegations do not accurately reflect the company's efforts to improve user safety.

Meanwhile, New Mexico Attorney General Raul Torrez described the judgment as a landmark decision, saying it establishes a framework that other states and countries could follow when pursuing stronger protections for children on social media platforms.

The Bottom Line

The New Mexico ruling marks one of the most significant legal actions against a social media company over youth safety. Beyond the financial penalty, the court's requirement for platform changes could have wider implications as governments and regulators around the world continue to push for stricter safeguards for children and teenagers using social media.