Meta Ordered to Pay $25 Billion in New Mexico Privacy Case
A New Mexico court has hit Meta with a historic $25 billion penalty following a trial centered on consumer protection violations and the legacy of the Cambridge Analytica data harvesting scandal.
Radwan AbdulhadiEditor and technology writer
The Historic Court Penalty
The long-lasting legal fallout from the Cambridge Analytica data privacy controversy has resulted in a massive financial penalty for Meta. A judge ordered the social media giant to pay $25 billion to the state of New Mexico for its role in misleading resident users regarding its data privacy practices, according to reports.
The substantial financial payout follows a two-week trial where a New Mexico jury evaluated the company's actions. The jury concluded that the company behind Facebook and Instagram committed 43 million violations of the state's consumer protection laws, with each violation carrying a penalty of up to $5,000.
Roots in the Cambridge Analytica Scandal
While the case was filed in 2021 and went to trial recently, aspects of the legal proceedings centered on the handling of a third-party app linked to the historical Cambridge Analytica data breach. The trial also examined broader corporate policies regarding data privacy settings and efforts to mitigate misinformation on the platform.
The original controversy involved Cambridge Analytica, an outgrowth of the British defense contractor SLC Group that specialized in influence operations and political work. The firm famously worked with the Trump campaign during the 2016 United States presidential election and participated in several controversial initiatives before shutting down.
Trial Details and Judge's Ruling
During the legal proceedings, the state of New Mexico initially asked for between $35 billion and $40 billion in penalties. Meta had requested a much lower maximum penalty of $3.45 billion. Judge Francis Mathew ultimately landed on the $25 billion figure, citing the systematic nature of the company's misstatements.
New Mexico Attorney General Raúl Torrez highlighted the significance of the resolution during a press conference, emphasizing the state's efforts to hold major technology corporations accountable for consumer deception.
Meta's Response and Appeal Plans
In response to the multi-billion-dollar judgment, Meta announced that it will challenge the decision through an appeal. Company leadership strongly criticized both the ruling and the enforcement approach taken by the state's attorney general.
C.J. Mahoney, Meta's Chief Legal Officer, criticized the outcome in a statement shared via email, arguing that the lawsuit creates severe operational challenges and acts as an imposition on online speech. Meta has said that it remains confident in prevailing on appeal while continuing to operate its services for users and small businesses.
Sources
- TechCrunchMeta ordered to pay $25 billion in case related to Cambridge Analytica scandal
- EngadgetMeta ordered to cough up $25 billion in New Mexico privacy case
- The VergeMeta ordered to pay $25 billion in penalties over the Cambridge Analytica scandal
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