US Court Imposes $375 Million Penalty on Meta, Seeks Stricter Rules to Protect Children

In a closely watched case that could redefine the regulation of social media, prosecutors in New Mexico have begun the second phase of a landmark trial against Meta , seeking sweeping changes to its platforms to better protect children.

The bench trial follows a jury verdict in the first phase that imposed $375 million in civil penalties on Meta, finding that its platforms including Instagram, Facebook and WhatsApp knowingly harmed minors’ mental health and failed to adequately address risks of child sexual exploitation.

State prosecutors are now asking the court to mandate fundamental redesigns to how these platforms operate. Key proposals include altering recommendation algorithms to reduce addictive engagement, limiting features such as infinite scroll, push notifications, and visible “like” counts , and introducing stricter safeguards for young users.

Among the most significant demands are robust age-verification systems and effective age limits to prevent underage access to adult-oriented or harmful content. Prosecutors are also seeking tighter controls on adult and sexually explicit material , stronger default privacy settings for minors, and a requirement that child accounts be linked to a parent or guardian for oversight .

Additionally, the state has proposed appointing a court-supervised child safety monitor to ensure compliance and track reforms over time.

Meta has opposed the measures, arguing they are impractical, infringe on free speech protections, and unfairly single out its platforms. The company has also warned it could suspend services in New Mexico if forced to comply.

Legal experts say the case could test the limits of protections under Section 230 and set a precedent for how governments regulate Big Tech’s impact on children.