Meta fined ₹5,390 crore in major US court ruling against Mark Zuckerberg’s company

by Tannu |

A New Mexico court has fined Meta $567 million (around ₹5,390 crore), ruling that the company's platforms harmed young users and failed to adequately protect children, while ordering stricter safety measures for the next five years.

Meta fined ₹5,390 crore in major US court ruling against Mark Zuckerberg’s company
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New Mexico (The Uttam Hindu): Social media giant Meta has suffered a major legal setback in the United States after a court in New Mexico imposed a fine of $567 million (around ₹5,390 crore) over allegations that its platforms harmed the mental health of children and teenagers. The court ruled that the company's policies contributed to addictive behaviour among young users and held Meta responsible for failing to adequately protect them. The ruling is also expected to require significant changes to the way Facebook and Instagram operate.

Court says Meta’s platforms encourage addiction among young users

During the hearing in Santa Fe, Judge Bryan Biedscheid ruled in favour of Democratic Attorney General Raúl Torrez. The court found that Meta designed its products in a way that encourages excessive use among young people, creating what it described as a "public nuisance." The court also concluded that the company failed to sufficiently protect children from serious risks, including online sexual exploitation.

Court finds violations of consumer protection law

The ruling comes five months after a New Mexico jury ordered Meta to pay $375 million at an earlier stage of the case. According to the jury's findings, the company made misleading claims about the safety of Facebook and Instagram for younger users. The court determined that these actions violated consumer protection laws, leading to the larger financial penalty.

Meta ordered to strengthen safety measures for five years

More than 40 US states and over 1,300 school districts have already filed similar public nuisance lawsuits against social media companies. As part of the latest ruling, Judge Biedscheid directed Meta to introduce stricter safeguards for young users. The company has been ordered to implement measures such as monthly usage controls for teenagers, limits on notifications, stricter monitoring of contact between adults and minors, stronger safety features for AI chatbots, and improved systems for reporting sexual exploitation. These requirements will remain in effect for the next five years.

Meta to appeal the ruling

Meta said it disagrees with the court's decision and plans to challenge it in a higher court. A company spokesperson stated that Meta remains committed to improving online safety for teenagers and is confident in its efforts. Attorney General Raúl Torrez welcomed the ruling, saying that Meta had prioritised profits over children's safety. He added that the judgment could serve as a model for other states and countries seeking greater accountability from social media companies. The case follows concerns raised in a Reuters report last year, which questioned the safety of Meta's AI chatbots in interactions involving children.

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