Meta ordered to pay RM2.32 billion into New Mexico recovery fund
A US court found the social media platforms of Mark Zuckerberg's company were a leading contributor to a youth mental health crisis in the state.
WASHINGTON – Technology giant Meta has been ordered to pay US$567 million (RM2.32 billion) into a recovery fund in the US state of New Mexico, after a court found its social media platforms created a public nuisance and a mental health crisis among young people.
The new financial penalty comes on top of a US$375 million (RM1.53 billion) civil penalty Meta was made to pay earlier this year after it was found to have breached the New Mexico Unfair Practices Act.
Meta was founded by technology tycoon Mark Zuckerberg.
The second phase of the trial, which began in May, sought to determine whether the company's conduct amounted to a public nuisance warranting changes to its products.
In his judgment, Judge Bryan Biedscheid said that while Meta was not the only party involved, its social media platforms were shown to be a leading contributing factor to the youth mental health crisis in New Mexico, based on the strong evidence presented throughout the trial.
How the money will be used
Of the total, US$420 million (RM1.71 billion) will be set aside specifically for the treatment of individuals harmed by the platforms.
The remainder will fund awareness, prevention, assessment and screening programmes, as well as improvements to the quality of support services.
In the 1990s, tobacco companies were forced to pay billions of dollars for misleading the public about the dangers of their products, sharply eroding the industry's influence.
In its first-quarter financial filing, Meta confirmed that the New Mexico Attorney General had proposed total penalties of up to US$62.85 billion (RM257.1 billion) in the case. – AGENCIES
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