A closely watched legal battle involving Meta is set to enter a critical phase in New Mexico, where a trial beginning Monday will examine whether the company’s social media platforms harmed young users and should be forced to implement sweeping changes.

The case centres on platforms including Facebook, Instagram, and WhatsApp, which the state alleges were designed in ways that encouraged addictive behaviour among minors and failed to adequately protect them from online risks, including sexual exploitation.

The upcoming proceedings mark the second phase of a lawsuit brought by New Mexico Attorney General Raúl Torrez. In March, a jury found that Meta violated the state’s consumer protection laws by misrepresenting the safety of Facebook and Instagram for younger users, awarding $375 million in damages.

This next stage will be decided by a judge in Santa Fe, who will determine whether Meta’s platforms constitute a “public nuisance” under state law—a designation that could open the door to far-reaching court-ordered reforms.

Potential Billions in Damages and Major Platform Overhaul

State prosecutors are expected to push for significantly higher penalties, potentially amounting to billions of dollars, alongside structural changes to how Meta’s platforms operate for younger users.

According to court filings, proposed measures include:

  • Introducing stricter age verification systems
  • Redesigning algorithms to prioritise higher-quality content for minors
  • Disabling features such as autoplay and infinite scrolling for underage users

Attorney General Torrez has framed the case as a potential benchmark for regulating social media platforms beyond New Mexico.

He told reporters the goal is to “set a new standard… nationally and potentially globally, for a new set of expectations for how social media companies are expected to conduct themselves.”

Meta Pushes Back on Claims

Meta has strongly disputed the allegations, stating it has already implemented extensive safety measures for younger users across its platforms.

In court filings, the company argued there is no conclusive scientific evidence linking social media use directly to mental health problems. It also warned that some of the changes being proposed could be impractical to implement and might even force it to reconsider operating in the state.

“The New Mexico Attorney General’s focus on a single platform is a misguided strategy that ignores the hundreds of other apps teens use daily,” a Meta spokesperson said ahead of the trial.

The New Mexico case is one of thousands of lawsuits filed across the United States targeting social media companies over claims that their products are intentionally designed to be addictive, particularly for younger users.

These cases have gained momentum amid growing concerns about rising mental health challenges among teenagers and the role digital platforms may play in shaping behaviour and well-being.

Meta itself recently warned investors that increasing regulatory pressure in both the U.S. and European Union could “significantly impact” its business and financial performance.

As the trial unfolds, its outcome could have implications far beyond New Mexico. A ruling that classifies Meta’s platforms as a public nuisance—and mandates structural changes—could influence how governments worldwide approach the regulation of social media and youth safety.

At stake is not just financial liability, but the future design and accountability standards of some of the world’s most widely used digital platforms.