Meta’s Historic Loss in Court Could Cost a Lot More Than $375 Million

Meta is confronting significant consequences following its $375 million defeat in a New Mexico child safety lawsuit. But financial penalties may be just the beginning: starting Monday, the company faces a new three-week trial in Santa Fe, where the state's attorneys hope to impose far-reaching changes on how Meta operates Facebook, Instagram, and WhatsApp in New Mexico.

Potential Operational Changes

Among the changes New Mexico is seeking are:

• Mandatory age verification for users in the state
• Banning end-to-end encryption for those under 18 and capping their usage at 90 hours per month
• Limiting addictive features like infinite scroll and autoplay
• Requiring Meta to detect 99 percent of new child sexual abuse material

The attorney general, Raúl Torrez, emphasizes that changing Meta’s business practices is the real goal — not just imposing a fine. He acknowledges that for a company as large as Meta, the $375 million penalty may not be enough to drive meaningful change without broader intervention.

Wider Impacts on Meta and the Tech Industry

Though any court-ordered changes would only apply to New Mexico, Meta could choose to roll out reforms elsewhere for consistency, or, as it has already threatened, withdraw its services from the state. This trial could set a broader precedent, signaling that courts may step in to reshape tech company policies.

Expert witnesses are set to testify on the feasibility and effectiveness of the proposed measures, but the outcome remains uncertain. If Torrez succeeds, it could influence ongoing legal battles nationwide where similar claims are being pressed against tech giants.

Debates Around Proposed Remedies

The AG’s proposals have ignited heated debate over privacy and practicality. For example, age verification could mean collecting more personal data, raising concerns among privacy advocates. Banning encryption for minors might just push users to alternative platforms, critics argue, while some see potential in restricting algorithms that connect adults and minors or removing addictive interface features.

There’s also skepticism about demanding Meta detect 99 percent of new child abuse content, with experts noting technical limits in measuring undetected materials. Meta itself argues such thresholds are impossible to verify. Oversight may require an independent monitor as the court weighs which remedies are practical.

The Broader Tech Policy Context

Torrez’s efforts fit into a larger push for federal child safety regulations and reform of Section 230, the law shielding tech platforms from certain liabilities. However, policy experts note that courts have historically played pivotal roles in industries ranging from tobacco to opioids, helping move policy forward through landmark cases.

The trial's outcome could become a bellwether for tech industry regulation in the United States, influencing settlement negotiations and legislative priorities for years to come.

For more details, read the original article at The Verge.