Meta Found Liable in New Mexico as TikTok Settles Alabama Suit

Social media giants faced major legal losses on Friday as courts and state governments targeted user safety and privacy practices. A jury in New Mexico found Meta Platforms Inc. liable for violating state consumer protection laws, ruling that the company deceived the public regarding data protection following the Cambridge Analytica scandal.

In a separate action, TikTok and its parent company ByteDance reached their first state settlement to avoid a trial in Alabama. The agreement resolves allegations that the platform was intentionally addictive and misled users about safety and Chinese government data access. TikTok will pay Alabama a minimum of $100 million, with the total potentially reaching $300 million. As part of the deal, the platform will implement a two-hour daily time limit, 15-minute usage pauses, and enhanced age verification.

These developments follow an $18 billion settlement Meta reached in August concerning child safety. Meta expressed disagreement with the New Mexico verdict, while the New Mexico Department of Justice characterized the ruling as a victory for consumers.