A landmark ruling orders Meta to pay $375 million for failing to protect minors on social media

A landmark ruling orders Meta to pay $375 million for failing to protect minors on social media
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A New Mexico jury has ruled that platforms like Facebook and Instagram harmed the safety and mental health of minors, in the first of many such verdicts expected this year.

A Meta logo next to a phone with a warning for those under 18. Nikolas Kokovlis (Getty Images)
This week, the verdict in the first major trial concerning social media and children's addiction to it is expected in Los Angeles, California. However, New Mexico has beaten it to the punch by just a few hours with an exemplary sentence. A jury has determined that Meta, the owner of Facebook, Instagram, and WhatsApp , is guilty of knowingly operating its platforms without adequate security, making it easier for sexual predators to contact children. This constitutes a violation of New Mexico's consumer protection laws and will result in a $375 million fine (approximately €323 million) in damages for the tech company, one of the biggest legal blows in the platform's history. Even so, this is far less than the roughly $2 billion the prosecution estimated it would need to compensate the more than 207,000 minors who accessed its websites each month.

The New Mexico trial began in Santa Fe on February 9th and lasted approximately seven weeks; the jury deliberated for only one day. In its verdict, the jury found the accusations that Meta made false or misleading statements to be true and well-founded. They also believe the company engaged in abusive business practices, taking advantage of the children's lack of experience. The jury determined that Meta prioritized profit over child and youth safety and violated New Mexico's Unfair Practices Act; furthermore, it concealed the potential mental health impacts on children.

Filed by the State Attorney General, Raul Torrez, in 2023, the case took three years to reach a conclusion. During this time, 40 other lawyers from various states filed lawsuits against the owner of Facebook and Instagram for "trapping children," arguing that its social networks contribute to children's mental health problems by creating a strong addiction: not only because of the content itself, but also because of how the platforms are designed. Following the verdict, Torrez stated in a press release that this is "a historic victory for all the children and families who have paid the price for Meta's decision to prioritize profits over children's safety": "Meta executives knew their products were harmful to children, ignored warnings from their own employees, and lied to the public about what they knew. Today, the jury has joined families, educators, and child safety experts in saying enough is enough."

The trial will have a second phase in May, where a judge, not a jury, will decide whether Meta and its networks have been a genuine public problem and how the company should proceed. For example, whether the company must offer and fund public programs to help repair the damage.

The tech company intends to appeal, as explained in a statement. “We strive to ensure the safety of users on our platforms and are aware of the challenges involved in identifying and removing malicious users or harmful content,” said a spokesperson. “We will continue to defend ourselves firmly and remain confident in our track record of protecting teenagers online.” On Tuesday, shares of Meta—which is valued at approximately $1.5 billion—closed down 1.9%.

In closing his arguments, the company's lawyer, Kevin Huff, stated that "the evidence shows that Meta invests in security not only because it's the right thing to do, but because it's good for business." "Meta designs its apps to help people connect with their friends and family, not to facilitate contact with predators," he asserted. Mark Zuckerberg, Facebook founder, Meta CEO, and one of the pioneers of the modern internet, has only appeared in this trial via video call, although he did testify in the Los Angeles trial, which took place almost simultaneously.

That trial in California, featuring the case of a 20-year-old woman named Kaley GM, has become a touchstone for what's to come, being the first of approximately 1,500 expected this year. She and her family have spoken of her immense addiction to social media, which she began using when she was six years old and on which she spent up to 16 hours a day. "I think social media, her addiction to social media, has changed the way her brain works," Kaley's mother testified in court. "She has no long-term memory. She can't live without a phone. She's capable of starting a fight just because you touch her phone."

Social media caused Kaley GM to suffer from anxiety, depression, and body dysmorphia, her lawyers argue. But outside the courthouse, parents who lost children to suicide due to social media addiction gathered. This hearing marked the first time Zuckerberg had been compelled to testify in court; he had previously appeared before Congress and the Senate . During his deposition on February 18, the entrepreneur focused on reiterating that children under 13 are prohibited from accessing Instagram and placed some responsibility on the minors themselves: “I believe there is a group of people, potentially a significant number, who lie about their age to use our services.”

Zuckerberg also insisted that his intention is not to make money—he has a fortune of around $200 million—since he seeks to donate “almost everything to charity” and is “focused on giving billions to scientific research.” “The better Meta does, the better we’ll be able to do research,” he told the same California jury that, in days or even hours, will decide whether Meta can continue accumulating capital or whether it must face the same fate as in New Mexico.

Maria Porcel, El Pais Spain