Meta Weighs Shutting Down Facebook and Instagram in New Mexico as Second Trial Looms

Key facts

• New Mexico Attorney General Raúl Torrez accuses Meta of violating state Public Nuisance Law.
• A New Mexico jury fined Meta $375 million in March for violating the Unfair Practices Act over child safety.
• The second trial begins Monday in Santa Fe District Court before the same judge, without a jury.
• Prosecutors seek age verification, safer algorithms, warning labels, and bans for adults engaging in child exploitation.
• Meta says the demands are 'impossible for any company to meet' and may shut down platforms in New Mexico.
• New Mexico's case is the first to reach trial among over 40 state attorneys general suing Meta over youth mental health.
• The bench trial is expected to last two to three weeks.

A Second Trial Threatens Meta’s Operations in New Mexico

New Mexico’s Department of Justice is preparing a second trial against Meta, the parent company of Facebook and Instagram, that could force sweeping changes to how the tech giant operates in the state. The trial, set to begin Monday in Santa Fe District Court, follows a landmark verdict in March in which a jury found Meta liable for violating the state’s Unfair Practices Act and fined the company $375 million. The new case, brought under the state’s Public Nuisance Law, accuses Meta of endangering children through its platform design. Attorney General Raúl Torrez said the trial will present an opportunity to demand specific modifications to the core functionality of Meta’s platforms. The case will be decided by the same judge who presided over the first trial, but without a jury.

Prosecutors Demand Age Verification and Algorithm Overhauls

The New Mexico Department of Justice is seeking a court order requiring Meta to implement age verification measures to prevent adults from posing as minors. Prosecutors also want safer algorithms, warning labels on potentially harmful content, and bans for adults who engage in child exploitation. These demands go beyond the penalties imposed in March. The earlier verdict centered on claims that Meta misled consumers about safety and put children and teens in danger. The new case targets the company’s ongoing practices, aiming to force structural changes rather than merely extract fines.

Meta Warns of Platform Shutdown in New Mexico

In response to the state’s demands, Meta has suggested it may shut down Facebook and Instagram in New Mexico entirely. The company stated that the attorney general’s requirements are “impossible for any company to meet and disregard the realities of the internet.” Attorney General Torrez countered that Meta would rather withdraw than implement what he called basic safety reforms. “Meta has a choice, obviously. The responsible choice and the ethical choice, and frankly the smart business move, is for them to just go ahead and just start doing the hard work of making this a safer product,” Torrez said. Meta later clarified that it is not in its interests to shut down, but maintained that the demands are unworkable.

Landmark Case Among Over 40 State Lawsuits

New Mexico’s case is the first to reach trial among more than 40 state attorneys general who have filed lawsuits against Meta, alleging the company contributes to a mental health crisis among young users. The March verdict, which imposed $375 million in civil penalties, was based on a jury’s determination that Meta knowingly harmed children’s mental health and concealed what it knew about child sexual exploitation on its platforms. If the judge in the upcoming trial rules in favor of the state, Meta could be forced to implement changes that would affect every user in New Mexico. The trial is expected to last two to three weeks.

What a Meta Withdrawal Would Mean for New Mexico

If Meta were to pull Facebook and Instagram from New Mexico, it would remove the platforms from the state entirely, potentially affecting millions of users. The company’s threat underscores the high stakes of the legal battle, which could set a precedent for how states regulate social media companies. Prosecutors argue that the changes they seek—such as default privacy settings and closer supervision of child accounts—are reasonable and necessary. Meta, however, contends that the demands are technologically and operationally infeasible, and that a shutdown would be a drastic but unavoidable consequence.

A Test for State Regulation of Social Media

The outcome of this trial could have far-reaching implications beyond New Mexico. As the first state to bring such a case to trial, New Mexico is effectively testing the legal boundaries of state power over national social media platforms. Other states are watching closely, and a ruling against Meta could embolden additional lawsuits. For Meta, the case represents a regulatory challenge that could force the company to choose between compliance in one state and a potential domino effect elsewhere. The company’s willingness to consider shutting down rather than complying signals the depth of its opposition to the proposed reforms.

The bottom line

• New Mexico’s second trial against Meta seeks court-ordered changes to platform design, including age verification and algorithm reforms.
• Meta has threatened to shut down Facebook and Instagram in New Mexico if forced to comply with the state’s demands.
• The March verdict fined Meta $375 million for violating the Unfair Practices Act over child safety.
• New Mexico’s case is the first of over 40 state lawsuits against Meta to reach trial.
• The bench trial will be decided by the same judge who presided over the first case, without a jury.
• The trial is expected to last two to three weeks and could set a precedent for state regulation of social media.