Meta Faces Major Policy Overhaul as New Mexico Court Case Enters Second Phase

Meta Faces Major Policy Overhaul as New Mexico Court Case Enters Second Phase
May 5, 2026 00:35

Meta, the parent company of Facebook and Instagram, is facing an increasingly difficult legal battle. The second phase of a lawsuit filed in the U.S. state of New Mexico over allegations of failing to ensure children’s online safety begins on Monday. After paying a penalty of 37 crore 50 lakh (375 million) dollars in the first phase, Meta now faces even greater risk. This phase of the case is not primarily about money, but about potentially forcing changes in how Meta operates its business.

New Mexico Attorney General Raúl Torrez has asked the court to compel Meta to implement specific business and technical changes. This three-week public nuisance trial could impose major restrictions on Meta’s future operations.

Key demands from the Attorney General

Attorney General Torrez has proposed several significant changes, including strict age verification for users in New Mexico. He has also called for banning end-to-end encryption (secure private messaging technology) in messaging apps for users under 18 years of age.

Other proposals include limiting teenagers’ usage time to a maximum of 90 hours per month, restricting features such as “infinite scroll” and video autoplay, and increasing the detection rate of child sexual abuse content to at least 99 percent.

In an interview with The Verge, Raúl Torrez said, “The 37 crore dollar fine is just the cost of doing business for a company like Meta. Our real goal is to change how they do business.”

Meta’s counterarguments

Meta and supporting organizations have described these demands as “unreasonable” and “dangerous.” Their key arguments include:

  1. Disabling end-to-end encryption would push users away from Facebook Messenger to other apps, potentially exposing them to greater security risks.
  2. The claim of detecting 99 percent of content is mathematically impossible, as there is no reliable way to measure what portion of undetected content has actually been identified.
  3. Meta spokesperson Chris Gro said in a statement, “These demands from New Mexico would undermine parental rights and restrict freedom of expression.”

Potential global impact on tech industry

Although the case is limited to the state of New Mexico, any major ruling by the court could force Meta to implement changes nationwide or even globally, as maintaining separate software versions for different states would be highly complex and costly. Some experts also believe Meta could temporarily suspend its services in New Mexico.

Analysts suggest that this case could become a landmark for the social media industry, similar to how major legal actions once reshaped the tobacco and e-cigarette industries.

DBTech/BMT/OR