A New Mexico judge has ordered Meta Platforms to pay $25 billion to the state, following a jury's finding that the company misled consumers about their data privacy. The penalty, issued on Wednesday, is one of the largest ever imposed on a major technology firm. The lawsuit, filed in 2021, accused Meta of mishandling New Mexico residents' personal information and deceiving users about its policies in the wake of the Cambridge Analytica scandal.The jury determined that Meta violated New Mexico's Unfair Practices Act more than 43 million times. State District Court Judge Francis Mathew criticized the company for a "systematic pattern of deception at the core of Facebook's business model." He noted that Facebook's misrepresentations about user control over data were not isolated incidents. The case's origins trace back to 2018 revelations concerning the political consulting firm Cambridge Analytica's improper acquisition of Facebook user data for targeted political advertising. However, New Mexico's case focused on Meta's broader statements about data practices, privacy settings, and content moderation following the scandal.New Mexico Attorney General Raúl Torrez stated that the judgment sends a message to other technology companies that his office will hold them accountable. He added that the $25 billion award will be allocated to school construction under New Mexico law. Meta has stated its intention to appeal the decision, with Chief Legal Officer C.J. Mahoney calling the lawsuit a "tax on speech." The company argued that the state failed to prove misleading statements about privacy and that content moderation harmed New Mexicans.This legal action is separate from a settlement Meta reached with nearly all other U.S. states concerning child safety issues, which included nearly $459 million related to Cambridge Analytica data harvesting claims. New Mexico opted out of that broader settlement, which allowed for this individual trial and penalty. The judge also stipulated that 15% annual interest will accrue on the penalty until it is fully paid.
Meta Fined $25 Billion by New Mexico in Data Privacy Case
A New Mexico judge ordered Meta Platforms to pay $25 billion in penalties after a jury found the company misled consumers regarding their data privacy. The case, stemming from the Cambridge Analytica scandal, involved allegations that Meta systematically deceived the public about data control and misinformation policies.
