Meta Faces High-Stakes New Mexico Trial That Could Reshape Its Platforms

Meta Platforms is set to face a major legal test in New Mexico starting Monday, in a case that could lead to sweeping changes in how its services—including Facebook, Instagram, and WhatsApp—operate. The company has warned that complying with potential court orders might even force it to stop operating in the state.

The trial, taking place in Santa Fe, stems from a lawsuit filed by New Mexico Attorney General Raúl Torrez. The state accuses Meta of deliberately designing its platforms to keep young users hooked while failing to adequately protect them from harmful content and sexual exploitation.

Focus on “public nuisance” claim

At the center of the case is whether Meta’s practices qualify as a “public nuisance” under New Mexico law. If the court agrees, it could empower the judge to impose broad changes aimed at reducing harm to minors. The outcome is being closely monitored nationwide, as similar lawsuits have been filed by other states, cities, and school districts seeking industry-wide reforms.

This trial represents the second phase of the legal battle. Earlier, in March, a jury determined that Meta had violated consumer protection laws by misleading users about the safety of its platforms for younger audiences. The company was ordered to pay $375 million in damages as a result.

Mounting scrutiny over child safety

Concerns about the impact of social media on children have been intensifying for years. Meta recently cautioned investors that increasing regulatory and legal pressure in both the U.S. and Europe could significantly affect its operations and financial performance.

New Mexico officials are now expected to pursue additional financial penalties—potentially in the billions—as well as court-mandated changes to how Meta’s platforms function within the state.

Possible platform changes

According to court filings, the state may ask the court to require several major adjustments. These could include stricter age verification systems, algorithm changes to prioritize higher-quality content for minors, and the removal of features like autoplay and infinite scrolling for younger users.

Torrez has said the trial will help quantify the scale and long-term impact of the alleged harm caused by Meta’s platforms over the past decade or more.

Meta pushes back

Meta has argued that it has already introduced numerous safety measures and addressed many of the concerns raised by the state. The company maintains that some of the proposed changes are not technically feasible and could disrupt its services to the point of making continued operation in New Mexico impossible.

In its defense, Meta also contends that its actions do not meet the legal definition of a public nuisance, which typically involves interference with shared public rights—such as blocking roads or polluting environments. The company further argues that there is no conclusive scientific evidence linking social media use directly to mental health issues.

Billions in damages at stake

In addition to structural changes, the state is reportedly seeking significant financial compensation. Meta claims that New Mexico could request as much as $3.7 billion to fund a long-term mental health initiative, including new facilities and expanded care services for young people.

The company has criticized this proposal, arguing it would effectively require Meta to cover mental health costs for all teenagers in the state, regardless of whether their conditions are connected to social media use.