Meta has been ordered to pay $25 billion in civil penalties in New Mexico after a court found that the company committed millions of violations of the state’s consumer protection law, escalating legal pressure on the owner of Facebook and Instagram over user privacy and online safety.
The ruling follows a jury verdict in September that found Meta misled consumers about how it protected personal information and addressed misinformation and hate speech on its platforms.
The case stems from a 2021 complaint filed after revelations that political consultancy Cambridge Analytica had improperly harvested data from millions of Facebook accounts. The information was reportedly used to identify and target messages likely to influence voters ahead of Donald Trump’s first presidential election victory.
Why the penalty reached $25 billion
The judge cited the scale and seriousness of the violations, including their alleged deliberate nature, repeated occurrence over time, the range of issues involved, and the participation of senior Facebook leadership.
Under New Mexico law, the maximum penalty was $5,000 per violation. Applying that amount to more than 43 million violations would have produced a total exceeding $219 billion.
The judge reduced the final civil penalty to $25 billion, nevertheless leaving Meta facing one of the largest corporate financial penalties in US history, according to the New Mexico attorney general’s office.
Meta has rejected the outcome and said it intends to appeal.
“This lawsuit seeks to impose a tax on speech to enforce new rules for what people can say online,” Meta chief legal officer C.J. Mahoney said, adding that the company believes it will prevail on appeal.
New Mexico intensifies its legal battle with Meta
The latest decision adds to a series of legal challenges facing Meta in New Mexico.
In a separate case concerning children’s online safety, the company was ordered to pay nearly $1 billion in civil penalties and abatement after being found to have misled the public about the safety of its products.
Meta has also reached a separate settlement with attorneys general from most other US states over allegations involving children’s online safety. The agreement was valued at $17.1 billion, although $5.3 billion of that amount is contingent on YouTube and TikTok implementing similar measures.
New Mexico Attorney General Raúl Torrez welcomed the latest ruling, arguing that the case demonstrates the consequences companies can face when they mislead consumers about the handling of personal information.
“This case has always been about more than one company or one scandal,” Torrez said, emphasising that the state had pursued the matter through trial and secured a verdict establishing millions of violations.
What the decision means for Meta
The $25 billion penalty represents a significant financial and reputational challenge for Meta as regulators and state governments continue scrutinising the practices of major social media companies.
Beyond the amount involved, the case highlights growing efforts to hold technology platforms accountable for how they handle users’ personal data and communicate the risks associated with their services.
Meta argues that the ruling threatens its ability to operate in New Mexico and raises concerns about government involvement in online speech. The company’s planned appeal means the legal dispute is not necessarily over.
For now, the decision marks a major setback for Meta in a long-running debate over privacy, consumer protection and the responsibilities of social media platforms.
Source: The Verge