Meta's 'profit over safety' calculation goes on trial in New Mexico
Meta faces a landmark trial in New Mexico alleging it prioritized profits over child safety. Internal docs reveal the company rejected safety measures to avoid a 3.3% traffic drop.
Key Highlights
- •Meta allegedly rejected safety protocols because they would reduce teen traffic by 3.3%.
- •Internal data showed Meta knew it had millions of unauthorized users under age 13.
- •The CEO reportedly wrote that safety is merely a "counterbalance" to the main goal of growth.
The algorithm that built a $1.2 trillion empire is now evidence in a Santa Fe courtroom.
That is the brutal economic calculus at the heart of the landmark trial that opened Monday. For the first time, a state attorney general has dragged Meta to court not just for negligence, but for allegedly operating a "marketplace for predators" that prioritized engagement metrics over the safety of its youngest users.
New Mexico Attorney General Raúl Torrez is testing a legal theory that could shatter Big Tech's liability shield: that Meta’s failure to police its platforms constitutes a deceptive business practice. The state’s opening arguments pulled no punches, citing internal documents where executives reportedly calculated that implementing stricter safety measures for teens would result in a 3.3% decrease in traffic, a loss the company was allegedly unwilling to accept.
The Counterbalance Memo
The trial, expected to last eight weeks, is effectively a public audit of Mark Zuckerberg’s conscience. State prosecutors presented a 2018 internal email where Zuckerberg reportedly wrote that "keeping people safe is the counterbalance, not the main point" of the platform.
This isn't just about bad PR; it's about the data Meta hid from investors and parents. Internal documents reveal Meta knew it had roughly 4 million users under the age of 13 on Instagram, despite public claims that children were banned. Furthermore, a shareholder proposal cited in court filings noted that 85% of all online child sexual abuse material (CSAM) reports in 2022 stemmed from Meta platforms. The state alleges Meta’s recommendation algorithms aggressively connected predator accounts with minors, creating what Torrez called a "breeding ground" for exploitation.
A Bellwether for Billions
The stakes for Meta (NASDAQ: META) extend far beyond New Mexico. This case is the tip of the spear for over 40 similar lawsuits filed by states across the US. If New Mexico proves that Meta’s safety claims violated the state's Unfair Practices Act, it creates a blueprint for every other attorney general to follow.
"Meta clearly knew that youth safety was not its corporate priority," lead attorney Donald Migliori told the jury in his opening statement, arguing that the company treated child safety as an "under-resourced" impediment to growth.
Meta’s defense hinges on "transparency," with attorneys arguing the company never promised a perfect system and that it spends billions on safety. But for investors, the terrifying variable isn't the fine, it’s the potential court-ordered changes to the engagement algorithms that power Meta’s $130 billion annual revenue machine.
