Meta threatens to shut down Instagram, Facebook in New Mexico if judge orders ‘impractical' kids protections

Meta has warned in a court filing that it may remove Facebook and Instagram from New Mexico if a judge orders broad, technically burdensome safety changes demanded by the state following a March jury verdict that hit the company with $375 million. The filing escalates legal and regulatory risk for Meta, which plans to appeal and faces multiple related lawsuits nationwide. Investors could view the threat of operational disruption, additional injunctions, and potential larger penalties (New Mexico had sought $2 billion) as negative for Meta’s revenue and reputation, particularly if courts require costly product changes or restrictions on ad-targeting and engagement-driving algorithms. The dispute also references parallel litigation involving Google’s YouTube, underscoring sector-wide legal scrutiny that could weigh on ad-driven platform valuations and spur volatility in tech shares.