Meta Decision in New Mexico: Millions of Dollars in Fines Cut

A court in the U.S. state of New Mexico ruled that Meta, the owner of Facebook and Instagram, must pay $567 million due to the negative effects on the mental health of young users. The decision further increased the financial penalties the company faces over child safety.

Total Amount Reached $942 Million

The court’s final ruling added to the $375 million fine imposed in March 2026 in the same case. Thus the total amount Meta is required to pay under the case rose to $942 million. That figure became one of the highest financial penalties imposed on a social‑media company for child safety.

Fund for Children’s Mental Health

Judge Bryan Biedscheid ruled that a substantial portion of the $567 million payment would be used for treatment services for young people. Approximately $420 million was earmarked for the mental‑health and treatment needs of young people in New Mexico, while the remaining funds were to be allocated to awareness, prevention, screening and similar programs.

New Rules from the Court to Meta

In addition to the financial dimension of the ruling, it was also requested that Meta change its child‑safety practices on Facebook and Instagram. The court imposed obligations requiring the company to improve its systems for identifying users under 13 and to delete personal data related to those accounts. The ruling also included stricter privacy measures for the accounts of young users in New Mexico.

Notifications and Usage Restrictions

The ruling also brought up additional restrictions on the social‑media experience of under‑age users. It was requested that Meta change its notification policies aimed at protecting young users and increase security measures on its platforms. The company is also required to submit progress reports on the applications the court has requested.

The lawsuit was filed in 2023.

New Mexico Attorney General Raul Torrez filed a lawsuit against Meta in 2023, alleging that the company did not adequately protect children from online dangers on Facebook and Instagram. The prosecution argued that young users were exposed to harmful content and sexual‑abuse risks because of certain design features and algorithms on the platforms.

Algorithms at the Heart of the Case

In the earlier phase of the lawsuit, the jury had concluded that Meta’s platforms misled consumers about their safety for children and violated state laws. The prosecution also alleged that the company’s recommendation systems could steer young users toward harmful content and risky accounts.

Meta to Appeal the Decision

Meta, however, stated that it disagreed with the court’s ruling. The company said it is working to ensure user safety and has taken steps to keep malicious actors and harmful content off its platform, and announced that it would bring the case to appeal.

Pressure on Social Media Companies Grows in the U.S.

The New Mexico decision arrived amid growing legal pressure in the U.S. over social media platforms’ impact on children. Numerous lawsuits have been filed against Meta in various states on similar allegations. The New Mexico ruling is said to establish a striking legal precedent concerning social media companies’ responsibility for child safety.