In a landmark ruling, Meta and Google were found liable for intentionally creating addictive platforms that harm young users. The California jury ordered Meta to pay $375 million in civil penalties for misleading consumers about the safety of its platforms, marking a significant moment in the ongoing scrutiny of Big Tech.

The lawsuit, initiated by the New Mexico attorney general’s office in December 2023, highlighted serious concerns regarding the impact of social media on mental health. The jury determined that Meta was liable for enabling harm, including child sexual exploitation, against its users. This ruling is seen as a pivotal step in holding tech companies accountable for their practices.

Meta’s liability extends beyond financial penalties; the jury found that the company disregarded warnings from its own employees about the risks associated with its platforms. Executives from Meta testified during the trial that harms to children were inevitable due to the vast user bases of their platforms. This admission underscores the challenges that social media companies face in balancing user engagement with safety.

During the trial, which lasted almost seven weeks, the jury deliberated for about one day before reaching their verdict. The maximum penalty of $5,000 per violation under New Mexico’s consumer protection laws was applied, with Meta responsible for 70% of the collective fine of $3 million imposed on both Meta and Google.

Raúl Torrez, the New Mexico attorney general, characterized the jury’s verdict as a historic victory for every child and family affected by Meta’s prioritization of profits over safety. “The era of Big Tech invincibility is over,” stated Sacha Haworth, reflecting a growing sentiment among advocates for stricter regulations on technology companies.

Meta has announced plans to appeal the ruling regarding the $375 million fine, indicating that the company intends to challenge the jury’s findings. A spokesperson for Meta stated, “We respectfully disagree with the verdict and are evaluating our legal options,” suggesting that the legal battle is far from over.

Concerns about social media addiction and its psychological impacts, such as body dysmorphia and depression, were central to the lawsuit. Observers note that this case may set a precedent for future litigation against tech companies, particularly as public sentiment continues to shift regarding the role of social media in society. As the implications of this ruling unfold, the tech industry will be closely watching how it affects regulatory approaches and consumer protection laws.

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Meta is set to shut down Horizon Worlds, its virtual reality social platform, on June 15, 2026. This decision follows the company’s broader pivot towards the metaverse, which began with its rebranding from Facebook in October 2021. Horizon Worlds, once a cornerstone of Meta’s VR strategy, will transition to a mobile-only experience after the shutdown, as confirmed in a community blog post.

The app will be removed from the Quest store on March 31, 2026, marking a significant reduction in Meta’s VR offerings. Prior to this announcement, Meta had cut over 1,000 employees from Reality Labs, the division responsible for developing the metaverse, indicating a shift in focus and resources.

Despite the closure, Meta has reiterated its commitment to virtual reality as a format. The company has outlined a roadmap for future VR headsets tailored to different audience segments, suggesting that while Horizon Worlds may be ending, the pursuit of a comprehensive metaverse experience continues.

Horizon Worlds has faced criticism since its inception, particularly regarding its visual quality and user engagement levels. Observers noted that the platform has never achieved significant popularity, with some suggesting that its increasing visibility in Meta Quest feeds has only amplified these criticisms. As one commentator put it, “It does feel like the end of an era.”

Mark Zuckerberg, CEO of Meta, has previously expressed ambitious goals for the metaverse, stating, “Our hope is that within the next decade, the metaverse will reach a billion people, host hundreds of billions of dollars of digital commerce, and support jobs for millions of creators and developers.” This vision underscores the importance of the metaverse in Meta’s long-term strategy.

As Meta continues to navigate the complexities of the virtual reality landscape, the closure of Horizon Worlds raises questions about the future of its other metaverse initiatives. The company is likely to focus on refining its offerings and addressing the challenges that have hindered user engagement in its VR platforms.

Details remain unconfirmed regarding how this shift will impact Meta’s broader metaverse ambitions and whether new platforms will emerge to fill the void left by Horizon Worlds. Observers will be watching closely to see how Meta adapts its strategy in response to these challenges and what new developments may arise in the coming years.

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