August 9, 2026. A landmark event has occurred in the history of digital platform regulation in the US, which could set a precedent for the global industry. Judge Brian Bitshied issued a verdict obliging the tech giant Meta to pay a record sum of $567 million as additional compensation. This decision, made in the context of a case initiated by New Mexico Attorney General Raúl Torres, marks the culmination of a years-long investigation into the harm social networks cause to the mental health of minors.
The history of the record fine and the total sum
The total financial obligation of Meta to the state of New Mexico has reached nearly one billion dollars — $942 million. The current fine of $567 million is a continuation of an agreement reached with a jury back in March 2026, when the company was ordered to pay $375 million. During the proceedings, state authorities concluded that Meta intentionally harmed the mental health of young users and concealed the fact that its platforms (Facebook and Instagram) were used for the sexual exploitation of children. The court ruled that the company was aware of the risks but failed to take sufficient measures to prevent them.
Allocation of funds: treatment and prevention
The court's decision provides for a clear distribution of the fine. Of the total $567 million awarded in the second phase, approximately $420 million will be directed directly to providing mental health treatment services for teenagers in New Mexico. The remaining funds will be allocated to preventive measures, awareness raising, screening, education, and monitoring over the next five years. Attorney General Raúl Torres called this decision a "victory for all parents who were concerned about the impact of social media on their children".
Strict restrictions for users under 18
The financial fine is not the only consequence for Meta. The company is required to implement radical changes to the operation of its applications within the state. Specifically, Meta must strengthen the user age verification process. A strict time limit is introduced: users under 18 will be allowed to spend no more than 90 hours a month on Facebook and Instagram in New Mexico. Furthermore, the company is required to disable most notifications for minors during nighttime and school hours, and to hide the number of likes on posts by default unless parental or guardian consent is obtained.
Meta's reaction and appeal prospects
On the same day, Meta announced its intention to appeal, rejecting the state's accusations. Corporate representatives stated: "We remain confident in our ability to protect youth online and will continue to defend ourselves against charges of misinformation." Meta insists that their algorithms are aimed at safety and considers the blame for causing mental health harm to be exaggerated; however, the New Mexico court did not accept these arguments, pointing to systemic flaws in the platforms' architecture.
Contradictory data
There are discrepancies in the interpretation of the total fine amount across various sources. While some news agencies (such as Forbes and MSN) operate with figures of "nearly $1 billion" or "$942 million" in headlines, combining the current fine with the previous March agreement, other sources focus solely on Judge Bitshied's new ruling of $567 million. Additionally, Meta emphasizes in its statements that the $942 million figure is not a "fine" in the classical sense, but rather "compensation" and "services," whereas the New Mexico prosecution insists that this is a severe punishment for violating child protection laws.