Meta Ordered to Pay $25 Billion in New Mexico Privacy Case

Judge Orders $25 Billion Penalty

On Wednesday, a New Mexico judge ordered Meta to pay the state $25 billion in penalties. The judge found that the company made misleading statements about the privacy of consumers in New Mexico. The case grew out of the nearly decade old Cambridge Analytica data harvesting scandal, though it was not directly about the data harvested by Cambridge Analytica. Instead, it targeted Facebook statements over the years regarding user data, privacy settings, and content moderation.

New Mexico Attorney General Raúl Torrez said in a press conference, via Reuters, "It has been a long time coming holding Big Tech accountable." The lawsuit was filed in 2021.

Jury Counted 43 Million Violations

In September, a Santa Fe jury found that Meta violated New Mexico's Unfair Practices Act by misleading residents on those issues. The jury counted 43 million violations. At up to $5,000 for each violation, the maximum penalty came to about $219 billion. The state asked for $35 billion to $40 billion. New Mexico attorney Randi McGinn said the court "should speak to Meta in the only language it understands, which is money, and the value of its stock price." Meta requested no more than $3.45 billion. Judge Francis Mathew set the penalty at $25 billion.

The judge described Facebook's promised post-scandal investigation as "willfully ineffective" while noting "the clear intentional and systematic nature of Facebook's repeated misstatements."

Separate From Other State Settlement

The lawsuit is separate from one the company recently settled with nearly every other US state over child safety concerns. That settlement included nearly $459 million specifically for Cambridge Analytica data harvesting claims. New Mexico skipped that settlement, which opened the door to this trial. The money will go to New Mexico's school system, with interest accruing at 15 percent a year until the penalty is paid in full.

Meta Plans Appeal

Meta has said it will appeal. Chief legal officer C.J. Mahoney called the penalty "a tax on speech."

Earlier coverage: New Mexico asks judge to fine Meta $35 billion to $40 billion for misleading users

Sources: Engadget