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Meta ordered to pay $567 million in New Mexico

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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.

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