A New Mexico court has ordered Meta Platforms Inc. to pay $25 billion after a jury found the company misled users about data privacy related to the Cambridge Analytica scandal. The case, initiated by New Mexico’s attorney general in 2021, centered on allegations that Meta allowed a British political consulting firm involved in the 2016 U.S. presidential campaign to harvest personal data from millions of Facebook users without their consent.
Judge Francis J. Mathew, who presided over the case, ruled that Meta committed more than 43 million violations of New Mexico’s consumer protection laws, each carrying a penalty of up to $5,000. The total penalty initially calculated exceeded $219 billion, but the judge reduced it to $25 billion. The funds awarded will be directed toward public education in New Mexico as stipulated by state law.
According to the court's findings, Meta made numerous deceptive statements about its privacy practices. Jurors determined that 26 of 29 statements made by Meta and its leadership regarding data access, misinformation, and hate speech were misleading. The ruling emphasized that the misconduct was not isolated but reflective of systematic deception integral to Facebook’s business model. Judge Mathew noted that the company exploited user misunderstandings about its privacy settings and failed to provide meaningful control over personal data.
New Mexico Attorney General Raúl Torrez described the verdict as a significant step in holding a powerful technology company accountable for longstanding abuses. He asserted that the ruling serves as a warning to the broader tech industry regarding consumer protections.
Meta strongly criticized the verdict, characterizing the lawsuit as an attempt to impose a “tax on speech” that enforces new restrictions on online expression. The company said it intends to appeal the decision and argued that a multi-billion-dollar fine could hinder business operations in New Mexico. Meta’s chief legal officer, C.J. Mahoney, contended that users have control over their data sharing and highlighted changes made to the company’s data policies since the 2018 Cambridge Analytica revelations.
The case follows years of legal challenges against Meta over data privacy, child safety, and its handling of harmful content. Earlier this year, Meta agreed to a $17 billion settlement with 47 states and territories addressing claims that its platforms endangered children’s well-being. However, New Mexico pursued its own lawsuits apart from the multistate agreements.
Financial analysts noted that while the penalty is large, Meta, valued near $2 trillion and reporting annual revenues of around $200 billion, is likely to contest the ruling. Legal experts anticipate that the case could result in a protracted appeals process.
The verdict underscores increasing efforts by state authorities to use consumer protection laws to address alleged misconduct by major technology companies, particularly in areas related to user data privacy and platform transparency.