Meta Ordered to Pay New Mexico $25 Billion Over Privacy
A state judge has ordered Meta to pay New Mexico $25 billion following a landmark trial over Facebook privacy practices, marking the largest fine ever levied against the tech giant.
Radwan AbdulhadiEditor and technology writer
Record Penalty Issued Following Jury Verdict
A state judge ordered Meta to pay New Mexico $25 billion after a jury found Meta liable for deceiving users about privacy on Facebook. State District Court Judge Francis J. Mathew wrote in his ruling that Facebook's deception was intentional and that executives consistently misled users regarding platform operations. Further details are available from SecurityWeek in the original source material.
Judge Mathew stated that promises given to users indicating they controlled their data were false. Jurors determined that Meta committed more than 43 million violations of New Mexico consumer protection laws through misleading public statements concerning personal data handling.
Origins of the Cambridge Analytica Case
The legal action emerged in the wake of the Cambridge Analytica controversy, where a political consulting firm harvested Facebook data to generate targeted political advertisements during the 2016 election season. The core of the trial focused on accusations that Facebook deceived users about a security breach involving a third-party personality quiz that harvested data from roughly 87 million profiles.
New Mexico Attorney General Raúl Torrez asserted at a news conference that the award serves as a warning to technology companies that the state will hold them accountable. Torrez described the judgment as an unambiguous message to Silicon Valley.
Meta's Response and Expected Appeal
In response to the judgment, Meta argued that the ruling and the enforcement approach taken by the state's office make conducting business in New Mexico nearly impossible. C.J. Mahoney, the company's chief legal officer, released a statement asserting confidence that Meta will prevail on appeal.
Mahoney characterized the lawsuit as an attempt to impose a tax on speech to enforce new rules for online communication. During the legal proceedings, company attorneys maintained that the state failed to prove that users suffered actual harm from any statements.
Comparison to Prior Penalties and Multistate Actions
The $25 billion penalty vastly exceeds the $5 billion fine levied against Facebook by the Federal Trade Commission in 2019. Prior to this judgment, Meta had reached a separate settlement with nearly all other states and territories totaling $18 billion alongside child-safety measures, though New Mexico chose to pursue litigation independently.
Legal analysts expressed surprise at the magnitude of the New Mexico decision, noting it equates to roughly $12,000 per person in the state. Under the New Mexico Constitution, consumer protection violation fines are allocated toward education spending, though the appeals process means the state may wait years to receive the funds.
Sources
- SecurityWeekMeta Ordered to Pay New Mexico $25 Billion for Deceiving Users About Privacy on Facebook
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