New Mexico Judge Orders Meta to Pay $25 Billion for Privacy Deceptions
A New Mexico judge has ordered Meta to pay $25 billion after the company misled users about privacy on Facebook.
A New Mexico judge has ordered Meta to pay $25 billion for deceiving users about its privacy practices on Facebook. This ruling, issued Wednesday, marks one of the largest legal penalties ever imposed on a technology company.
The case stems from issues related to the Cambridge Analytica scandal, where it was revealed that the personal information of approximately 87 million Facebook users was improperly accessed. A jury recently found Meta liable for over 43 million violations of New Mexico’s consumer protection laws, indicating a widespread pattern of deceptive practices.
State District Court Judge Francis Mathew criticized Meta for having a “coherent strategy designed to mislead the public” regarding user data control. He noted, “Facebook promised users that they controlled their data. This was false,” highlighting the intentional nature of the company’s misleading statements.
The New Mexico Attorney General, Raúl Torrez, stated that the ruling serves as a warning to tech companies that they will be held accountable for their actions. Meta, however, plans to appeal the decision, asserting that the lawsuit effectively imposes a tax on speech and that they are confident in prevailing during the appeal process.
C.J. Mahoney, Meta’s chief legal officer, criticized the enforcement approach of the Attorney General’s office, claiming it complicates doing business in New Mexico. The firm has faced mounting legal challenges, including a recent judgment in which it was ordered to pay nearly $1 billion over allegations that its platforms caused addiction among young users.
These legal hurdles have not stopped Meta from reporting stronger-than-expected quarterly revenue of $64.6 billion, exceeding Wall Street estimates. The company’s stock saw a rise of over 3% in after-hours trading following the announcement.
Legal experts have expressed surprise at the size of the New Mexico judgment, which far surpasses previous fines, such as the $5 billion penalty imposed by the Federal Trade Commission in 2019. The considerable judgment could impact Meta’s future operations and finances, though appeals may take years to resolve. Under New Mexico law, fines imposed for consumer protection violations are directed toward state education funding.
Meta’s attorneys have argued that the state failed to prove the company’s deceptive practices caused actual harm to users. They contend that the company has been proactive in improving its content moderation policies since the initiation of the lawsuit in 2021, effectively removing a significant portion of harmful content.
