Meta ordered to pay $567 million in New Mexico
A court in the US state of New Mexico on Thursday, August 6, ordered Meta Platforms to pay $567 million for harm that, according to the ruling, was caused by its platforms to underage users. The case concerns Facebook, Instagram, and WhatsApp, and follows earlier civil penalties of $375 million. novinky.cz ↗
The money is intended to fund mental health and prevention programs for young people over a period of five years. The court also ordered the implementation of safety measures, including hiding the number of "likes" on photographs of minor users by default. Prosecutors argued that the company's products were designed to encourage addictive behavior among young users.
The ruling adds to the mounting pressure on Meta, which has already faced reports concerning management, regulation, AI safety, and privacy protection. In the second financial quarter, the company reported a year-on-year decline in net profit of 14 percent to $15.85 billion, even though its revenue grew by 28 percent. The results were affected primarily by extensive investments in artificial intelligence.
The broader context also includes European rules on labeling AI-generated content, privacy questions surrounding Meta's smart glasses, and a British survey published on Monday by the Fair Tax Foundation, according to which two-thirds of respondents supported a higher tax on digital services. Further developments will depend on compliance with the court-ordered measures and the company's response to growing regulatory pressure.
The money is intended to fund mental health and prevention programs for young people over a period of five years. The court also ordered the implementation of safety measures, including hiding the number of "likes" on photographs of minor users by default. Prosecutors argued that the company's products were designed to encourage addictive behavior among young users.
The ruling adds to the mounting pressure on Meta, which has already faced reports concerning management, regulation, AI safety, and privacy protection. In the second financial quarter, the company reported a year-on-year decline in net profit of 14 percent to $15.85 billion, even though its revenue grew by 28 percent. The results were affected primarily by extensive investments in artificial intelligence.
The broader context also includes European rules on labeling AI-generated content, privacy questions surrounding Meta's smart glasses, and a British survey published on Monday by the Fair Tax Foundation, according to which two-thirds of respondents supported a higher tax on digital services. Further developments will depend on compliance with the court-ordered measures and the company's response to growing regulatory pressure.
This summary was generated by artificial intelligence. It may contain inaccuracies. Please verify information in the original sources below.
Sources (3)
Škodí jako špinavý vzduch, řekl soudce. Meta musí zaplatit 12 miliard za újmu způsobenou dětem
novinky.cz
| 05:05 07.08.
Danni dai social ai minori: Meta condannata a pagare 567 milioni di dollari
La Repubblica
| 04:32 07.08.
Meta moet ruim half miljard dollar betalen vanwege mentale schade jongeren
NOS
| 04:13 07.08.
🔥 You might also like
Technology
OpenAI's new model did not surpass its predecessor in intelligence. The cyber risk the company self-reported is not measured by independent rankings
Astra has the same score in an independent index as its predecessor, and is cheaper for programming. Meanwhile, Slovakia signed the Prague Declaration on artifi …
Internet
Meta faces pressure over children, privacy, and the role of social networks
A court in the US state of New Mexico ordered Meta Platforms to pay 567 million dollars for harm caused by its platforms to underage users. The case involves Fa …
📰
Internet
Meta is preparing a Facebook that looks more like TikTok
Facebook and Instagram, owned by Meta, are adding further news on operations, security, regulation, and the direction of social networks after the July outage.
© HotInfo
From our newsroom original
All →
Czechia marks 90 years since the birth of Václav Havel

German BND Chief Warns of Risk of Conflict Between Germany and Russia

Nobel Prize in Medicine Awarded for Discoveries in Optogenetics

What Europe is writing about: Russia attacked Kyiv overnight, Romanian parliament votes on Mureșan's government, Italy renews pact with Egypt after Regeni case

Serbia wants Russian gas even as an EU candidate. The deal expires Wednesday, Vučić hopes for an extension

Albania is pursuing the former intelligence chief. She returned to house arrest, and messages to a fugitive businessman leaked from the case file

Moldova has declared a state of emergency in energy and hydrology. The Chișinău heating plant is seeking an 83 percent increase in heat prices, while Energocom reported an evening deficit

René Benko's Two-and-a-Half-Year Sentence for Fraudulent Bankruptcy Is Final. Neither Prosecution nor Defense Appealed