Meta Faces New Mexico Trial That Could Force Changes to Facebook, Other Platforms

The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
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Meta Faces New Mexico Trial That Could Force Changes to Facebook, Other Platforms

The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)

A trial beginning in New Mexico on Monday could prompt a judge to order sweeping changes to how Facebook, Instagram and WhatsApp operate - a move Meta Platforms has warned could force it to withdraw from the state.

The case, which will be tried before a judge in Santa Fe, stems from a lawsuit filed by New Mexico Attorney General Raúl Torrez, a Democrat, accusing the social media giant of designing its products to addict young users and failing to protect children from sexual exploitation on its platforms.

At the heart of the trial is whether Meta’s platforms have created a "public nuisance" under New Mexico law. That finding would allow the judge to order wide-ranging remedies aimed at curbing alleged harms to young users. The case is being closely watched as states, municipalities and school districts across the country pursue similar claims seeking to force changes at the industry level.

Monday's trial marks the second phase of New Mexico's lawsuit. A jury in March found Meta violated the state’s consumer protection law by misrepresenting the safety of Facebook and Instagram for young users. ‌It ordered the ‌company to pay $375 million in damages.

Criticism of children's safety on social media has been mounting for years. ‌On ⁠Wednesday, Meta warned ⁠investors that legal and regulatory blowback in the European Union and the US "could significantly impact our business and financial results."

SWEEPING REMEDIES AT STAKE

Torrez’s office is expected to seek both billions of dollars more in damages and an order requiring Meta to make substantial changes to its platforms for New Mexico users, according to court filings.

Meta has said it has already addressed many of the state's concerns and taken extensive measures to ensure its young users are safe. The company said in court filings last week that many of the changes Torrez’s office is seeking are impossible for it to comply with and may force it to withdraw from the state entirely.

"The New Mexico Attorney General’s focus on a single platform is a misguided strategy ⁠that ignores the hundreds of other apps teens use daily," a Meta spokesperson said in a statement ahead ‌of the trial. "Rather than providing comprehensive protections, the state's proposed mandates infringe on parental rights ‌and stifle free expression for all New Mexicans."

A ‘PUBLIC NUISANCE’

The trial before Judge Bryan Biedscheid will examine whether Meta's conduct meets the standard for a public nuisance ‌under New Mexico law, which would allow the court to impose remedies aimed at abating the alleged harm.

A public nuisance claim targets ‌activities that unreasonably interfere with the health and safety of a community. Classic examples include blocking a public road, polluting a waterway or emitting noxious fumes.

State governments have invoked public nuisance law in recent decades to pursue a broader range of industries, including litigation tied to tobacco, opioids, climate change, and vaping, said Adam Zimmerman, a professor at USC’s Gould School of Law.

New Mexico's case is among a growing number of lawsuits accusing Meta and other social media companies ‌of intentionally designing products to be addictive to young people.

While many cases have been filed by families over specific injuries to individuals, more than 40 other states and over 1,300 school districts have ⁠filed lawsuits seeking court-ordered changes ⁠and damages under public nuisance law.

New Mexico said it plans to ask the judge to order Meta to make changes including verifying users' ages; redesigning its algorithm to promote quality content for minors; and ending autoplay and infinite scrolling for minors.

"It will be an opportunity for us to explore more deeply the size and scale and effectively the monetary value of the public nuisance harm that was a product of this business's behavior for the last, you know, 10 or 15 years," Torrez told reporters at a press conference on Thursday ahead of the trial.

The company has said in court filings that it cannot have created a public nuisance because it has not interfered with a public right. It also said there is no scientific evidence to support the idea that social media has caused mental health problems, and that many of the state’s requests are "technologically impractical or completely impossible."

In a public nuisance case, the state can also seek money damages to abate the harm. That sum could be substantial when the impact is said to have affected large segments of the population. Torrez’s office has not detailed the amount it will seek.

Meta said in court filings New Mexico plans to ask for $3.7 billion in damages to fund a 15-year mental health plan including new healthcare facilities and hiring providers, a request it said would require it pay for mental health care for all teens in the state regardless of the cause of their needs.



China Bets on AI to Promote President Xi Jinping's Thinking

In this pool photograph distributed by the Russian state agency Sputnik, China's President Xi Jinping gives a speech during the opening ceremony of the Years of Russian-Chinese Cooperation in Education in Beijing on May 20, 2026. (Photo by Kristina Solovyova / POOL / AFP)
In this pool photograph distributed by the Russian state agency Sputnik, China's President Xi Jinping gives a speech during the opening ceremony of the Years of Russian-Chinese Cooperation in Education in Beijing on May 20, 2026. (Photo by Kristina Solovyova / POOL / AFP)
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China Bets on AI to Promote President Xi Jinping's Thinking

In this pool photograph distributed by the Russian state agency Sputnik, China's President Xi Jinping gives a speech during the opening ceremony of the Years of Russian-Chinese Cooperation in Education in Beijing on May 20, 2026. (Photo by Kristina Solovyova / POOL / AFP)
In this pool photograph distributed by the Russian state agency Sputnik, China's President Xi Jinping gives a speech during the opening ceremony of the Years of Russian-Chinese Cooperation in Education in Beijing on May 20, 2026. (Photo by Kristina Solovyova / POOL / AFP)

Xinhuanet, owned by China's official Xinhua news agency, plans to invest over 1.1 billion yuan ($162.38 million) on an "authoritative" AI agent to help promote President Xi Jinping's thinking, Shanghai Stock Exchange filings showed.

The project, known as "Xinhua Yudian," meaning Xinhua lexicon, is "an intelligent agent for learning, researching, and disseminating Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era," the company said.

Driven by mainstream values and dedicated to "spreading the positive voice," the agentic AI will also provide users ⁠with current affairs and ⁠political news content to help them deal with information overload and "a dilemma of trust in distinguishing truth from falsehood.”

China in March launched a sweeping "AI+" blueprint to encourage the adoption of artificial intelligence across all sectors of the economy. It also ⁠follows previous tech-driven efforts to broaden the reach of official state ideology among an online-savvy younger generation.

In 2019, China rolled out a hit propaganda app known as "Xuexi Qiangguo," which literally translates as "Study to make China strong." At one point after its launch, it overtook WeChat and the Chinese version of TikTok to become the most popular app on Apple's China app store.

Xinhua's proposed agentic AI will ⁠present the ⁠essence of Xi's discourses to its users, who can rely on the tool as a politically sensitive citation checker, ensuring references to Xi's words "in official document writing and policy interpretation are accurate and error-free."

To be built on the state-run news agency's "pure and clean" corpus library, the AI will help deliver the party's voice to all sectors of Chinese society, lending further support to "consolidating the ideological and public opinion foundation," the company said.


Anthropic Calls for Pause of Global AI Development

FILE PHOTO: Anthropic logo is seen in this illustration created on March 1, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Anthropic logo is seen in this illustration created on March 1, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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Anthropic Calls for Pause of Global AI Development

FILE PHOTO: Anthropic logo is seen in this illustration created on March 1, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Anthropic logo is seen in this illustration created on March 1, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

Artificial intelligence company Anthropic suggested Thursday a global pause on building the most powerful AI systems as the latest models are beginning to show signs they could escape human control.

The San Francisco-based company, which makes the Claude family of AI models, said in a report that a worldwide slowdown in cutting-edge AI development would "likely be a good thing" -- but warned that if only one company stopped, rivals would simply race ahead.

"We believe it would be good for the world to have the option to slow or temporarily pause frontier AI development to enable societal structures and alignment research to keep up with the advance of the technology," AFP quoted it as saying.

Getting a real pause to work would mean multiple major AI companies in multiple countries -- most notably the United States and China -- all agreeing to stop at the same time, under rules everyone could actually verify, Anthropic said.

That idea may prove somewhat unpopular with the likes of Elon Musk, as the hotly anticipated stock market debut of his SpaceX company -- which owns his artificial intelligence venture xAI -- is expected to make him the world's first trillionaire.

"Without a global coordination mechanism, companies and governments will have to make difficult decisions about safety while under competitive and geopolitical pressures," Anthropic said.

The company has faced pushback from others in the industry -- and officials in the White House -- who say its focus on worst-case scenarios overstates the risks and amounts to a strategy for slowing rivals under the cover of safety concerns.

Still, the White House has acknowledged the power of the company's Mythos model -- which has not been made available to the general public due to its cybersecurity capabilities and is currently deployed only to a small number of vetted organizations.

The proposal would face an uphill battle in Washington and Silicon Valley, where US officials and tech executives have repeatedly argued that any slowdown in AI development risks handing China a decisive strategic edge in what many see as the defining technology race of the century.

US President Donald Trump, however, said he discussed the possibility of cooperating with China on AI safety issues during his recent visit to Beijing.

Trump also signed an executive order this week that allows the government 30 days to conduct a preliminary review of the most powerful US AI models before their release.

Anthropic compared the problem to nuclear arms control treaties, but said it would be even harder to get a handle on since AI training is far easier to hide than a missile silo, and the temptation to quietly keep going would be enormous.

"You want the option to be able to take your foot off the gas and put your foot on the brake," Anthropic's co-founder Jack Clark told Britain's BBC Newsnight on Thursday.

"Right now, it's like the AI industry has a gas pedal, but it doesn't have a brake pedal."

The company said it plans to bring together government officials, scientists, advocacy groups and competing AI firms in coming months to figure out how such a system could work.

The call for coordination comes alongside internal data showing that AI is already dramatically speeding up the development of AI itself, Anthropic said.

That acceleration creates a feedback loop that Anthropic warned could eventually lead to what researchers call "recursive self-improvement."

That's the idea of an AI system that becomes capable of essentially teaching itself to get smarter, without much human help.

"We are not there yet, and recursive self-improvement is not inevitable," the Anthropic report said, while adding that it could arrive sooner than most governments and institutions are ready for.

"The evidence suggests that the human role is narrowing at each step in the AI development process," the company said.


Crypto Scammers Prey on French Victims from Albania

This image taken from a handout video released by Albanian police shows operators in an alleged cryptocurrency scam call center in Tirana in April 2026. Handout / ALBANIA POLICE/AFP
This image taken from a handout video released by Albanian police shows operators in an alleged cryptocurrency scam call center in Tirana in April 2026. Handout / ALBANIA POLICE/AFP
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Crypto Scammers Prey on French Victims from Albania

This image taken from a handout video released by Albanian police shows operators in an alleged cryptocurrency scam call center in Tirana in April 2026. Handout / ALBANIA POLICE/AFP
This image taken from a handout video released by Albanian police shows operators in an alleged cryptocurrency scam call center in Tirana in April 2026. Handout / ALBANIA POLICE/AFP

Despite facing up to 10 years in jail on fraud charges for allegedly luring people into putting their savings into an Albania-based cryptocurrency investment scam, Jon shows zero remorse.

"I don't see why I should have any qualms if people fall for it," he told AFP in an interview in a Tirana cafe.

The Albanian capital has become a favored location for scam call centers to set up in recent years, according to former policeman Fatjon Softa, thanks to the city's multilingual population, low wages and possibilities to launder funds.

Jon, whose name has been changed to preserve his anonymity, said he modelled himself on Jordan Belfort, the stockbroker who cheats his way to the top, played by Leonardo DiCaprio in the 2013 film "The Wolf of Wall Street".

In a luxury office building in the center of Tirana, Jon would pass himself off as an American as he contacted potential victims he said others had already identified.

"My job was to lure them in and convince them to invest," said Jon, adding that he sometimes felt "proud" of the job he did.

The job earned the twenty-something Albanian 1,450 euros (a little under $1,700) per month before performance bonuses, compared to the country's minimum wage of 500 euros before taxes.

Jon called it an "excellent opportunity, very well paid".

But after six months in the job he is now required to check in with the court every week until he is tried on fraud charges that carry a jail term of three to 10 years.

- French victims -

At the end of April several Albanian scam centers were dismantled, including the one Jon worked in, following an investigation by police in the southwestern French city of Pau.

French investigators had been seeking to track down the scammers since a complaint in 2023 by an investor who lost 30,000 euros investing on a platform called universatrade.io.

They eventually identified 19 French victims who had lost around 1.5 million euros in the scams.

One of those victims, a businesswoman based in the south of France, said her misfortune began by clicking on an ad about investing in oil.

"Ten minutes later I received a call," said Chantal, whose name has also been changed to protect her anonymity.

"My daughter was getting married, I told myself I could make a little bit extra," she added.

Initially Chantal only invested 250 euros, but after seeing her money quickly quadruple she succumbed when advisors asked if she wanted to invest more money. Soon she was in for 80,000 euros.

Chantal said she researched the investment platforms and found them on the internet, with profiles of their advisors on LinkedIn. One even sent a copy of his identity card.

- Ready to 'blow her brains out' -

In December of last year, three months after her initial investment, Chantal had 300,000 euros of gains in her app account and she tried to withdraw the equivalent of 30,000 euros in cryptocurrency.

"That's when everything went down the drain," she said.

Even though she realized there was a problem the scammers had such a tight grip on her -- calling 15 to 20 times per day -- that they persuaded her to continue investing with promises that additional funds would unlock withdrawals.

"They've got you. What can you do? They have your money," said Chantal.

"You don't sleep all night, your brain just can't cope. And the next day, they tell you: 'By noon there has to be this amount, otherwise you won't get your money back,'" she added.

"So you pay the amount. An hour later, they say it'll be in your account. But it's not there. And you cry, you scream your head off."

A lawyer helped Chantal recover part of the money, which she then lost again.

Chantal said finally she "wanted to blow her brains out", but her family saved her from going through with it.

"People say that victims are gullible, but the scams are put together well", they are very "sophisticated", said a source close to the investigation.

- 'They steal your dignity' -

French investigators were eventually able to track the scammers to Albania, and a police raid recovered a computer hard drive with the names and contact information of the French victims.

Five Albanian nationals were arrested, including the suspected mastermind and owner of the call center, who was remanded into custody pending trial.

As Albania does not extradite its citizens, French prosecutors plan to drop their case in favor of their Albanian colleagues, who have promised to seek compensation for French victims.

Chantal wants to testify so others avoid her misfortune.

"They steal more than your money. They steal your dignity," she said.