New Mexico has reduced its financial demands against Meta Platforms Inc. The state scaled down its proposed penalties from $3.7 billion to just under $1 billion in a lawsuit that claims the social media giant contributed to the state’s youth mental health crisis.
In a 277-page court filing, the New Mexico Department of Justice said the reduced figure more accurately reflects its estimate of social media’s role in New Mexico’s mental health harms.
The filing also seeks broad changes to Meta’s operations, such as stronger age-verification measures, safer recommendation algorithms, and the removal of the “infinite scroll” feature. Entrepreneur Aza Raskin, inventor of infinite scroll, has since turned against his creation. He alleged that Meta’s apps were deliberately made addictive for children.
Still pending before a judge in Santa Fe, the case has emerged as a key battleground in the wider push to hold tech companies responsible for the mental health effects of social media on young users.
Meta has asked the court to dismiss the proposed remedies or further reduce any penalties. In its previous filings, the social media giant warned that hefty penalties and overly burdensome requirements could force it to suspend access for New Mexico’s millions of users to Facebook, Instagram, and WhatsApp.
The Justice Department claims that algorithmic feeds, ‘likes,’ and endless scrolling deliberately boost engagement and exploit children’s cognitive vulnerabilities. Meta disputes those claims, adding that excessive penalties could establish legal precedents with wide-ranging consequences for the internet industry.
The court will decide not only the size of any penalty against Meta. It will also determine how much authority states have to impose changes on social media platforms.