Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) has been ordered to pay more than US$900 million after a New Mexico judge significantly increased the financial penalty stemming from a landmark case over the company’s treatment of young users.
State Judge Bryan Biedscheid ruled on Thursday that Meta must establish a US$567 million abatement fund, on top of US$375 million in civil penalties previously awarded by a jury.
The Facebook, Instagram and WhatsApp parent will also be required to introduce additional safety measures, including default settings that hide the number of “likes” on photos posted by underage users and public disclosures on its website outlining risks associated with using its platforms.
Biedscheid said the abatement fund was “necessary, due to the wide-ranging impacts of the harm and the complex nature of the remedy”.
The US$567 million fund was below the US$779.5 million sought by lawyers representing New Mexico.
Meta did not immediately comment on the ruling.
The decision follows a lawsuit brought by New Mexico Attorney General Raúl Torrez, who accused Meta of failing to adequately protect young users from sexually explicit material and making it too easy for predators to contact children through its platforms.
A jury found in March that Meta had wilfully violated New Mexico consumer protection laws.
The case is among thousands of legal actions facing Meta from state attorneys general, school districts and individual plaintiffs, many of which allege the company prioritised user growth and engagement over the safety of children and teenagers.
The New Mexico proceedings have also become an important test of the extent to which social media companies can be held legally responsible for content and harms arising on their platforms.