Meta ordered to pay $25 billion penalty in New Mexico data privacy trial

A judge in New Mexico ordered Meta Platforms on Wednesday to pay a $25 billion penalty following a trial regarding the company's handling of user data privacy. The ruling represents the largest single-state fine ever levied against the technology giant for its business practices.

The lawsuit, filed by the state's attorney general in 2021, originated from Meta's involvement in the Cambridge Analytica scandal. That controversy involved the political consulting firm improperly harvesting personal information from millions of Facebook users without their consent, including work related to the 2016 U.S. presidential election.

District Court Judge Francis Mathew wrote in his order that the company's wrongdoing spanned more than a decade from 2010 to 2021 and went to the heart of its core business operations. While the initial penalty calculated under state law exceeded $219 billion based on tens of millions of violations, the judge reduced the final figure to $25 billion, an amount roughly equal to the company's quarterly profits.

During the proceedings, jurors found that Meta and its leadership had intentionally misled the public regarding data sharing and how the platform enforced policies on hate speech and misinformation. State lawyers had originally asked for fines reaching up to $40 billion, whereas Meta argued that any penalty exceeding $3.4 billion would violate constitutional protections.

New Mexico Attorney General Raúl Torrez praised the decision during a press conference in Albuquerque. "For too long, powerful technology companies have operated as though their size and influence put them beyond the reach of the law," Torrez said, adding that the outcome proves no corporation is immune from accountability.

Meta strongly disagreed with the decision and announced plans to appeal the ruling. C.J. Mahoney, Meta's chief legal officer, stated that the judgment makes it nearly impossible to operate within New Mexico and argued that the lawsuit attempts to penalize protected speech.

Financial analysts and legal experts anticipate a lengthy appellate battle ahead. Some experts noted that despite the massive financial penalty, Meta's immense market valuation and financial standing mean the final outcome will take a significant amount of time to resolve through the courts.

This case marks the second major legal defeat for Meta in New Mexico within six months. Earlier in the year, a Santa Fe jury ordered the company to pay penalties and fund mental health initiatives following a separate trial centered on the safety of children on social media platforms like Instagram, Facebook, and WhatsApp.