Meta Hit with $25 Billion Fine for Data Violations in New Mexico

Major Ruling Against Meta

The Cambridge Analytica scandal continues to impact Meta, the parent company of Facebook, as a judge in New Mexico has ordered the firm to pay $25 billion in fines. This ruling arises from over 43 million breaches of the state's unfair practices law, marking one of the largest penalties the company has faced this year amidst various legal challenges.

Details of the Case

A jury's decision in September confirmed that Meta had deceived consumers about its data protection measures. The legal actions stemmed from a complaint filed in 2021 following revelations that the UK-based consultancy, Cambridge Analytica, illegally acquired data from millions of Facebook accounts. This data was manipulated to craft communication aimed specifically at influencing voter behavior during Donald Trump's 2016 presidential campaign.

The judge highlighted the extensive nature of the violations, noting the “extraordinary number of willful violations” and the involvement of high-level executives at Facebook. Therefore, the judge deemed it necessary to impose the maximum fine allowable under state law, which is $5,000 per infraction. Though the potential penalties could have exceeded $219 billion, the judge ultimately reduced the total to $25 billion.

Meta's Response

Meta's chief legal officer, C.J. Mahoney, responded to the judgment, criticizing the New Mexico Attorney General's approach. He argued that the ruling threatens the company's ability to operate in the state, alleging that the lawsuit seeks to create restrictive standards on online speech. Mahoney also expressed confidence that the company would succeed in appealing the decision.

A Historical Penalty

The $25 billion figure is reported to be among the largest penalties levied against a corporation in United States history, surpassing other recent judgments involving Meta. In another significant case in New Mexico, the company was previously fined nearly $1 billion for misleading consumers regarding the safety of its products. Additionally, a settlement regarding children’s online safety issues prompted Meta to agree to pay $17.1 billion, contingent upon similar actions taken by competitors like YouTube and TikTok.

Attorney General's Statement

New Mexico Attorney General Raúl Torrez expressed satisfaction with this latest outcome, viewing it as a victory for consumer rights. He emphasized that the case was not solely about Meta, but rather about the accountability of corporations in how they handle consumer data and the necessity for meaningful consequences for misleading practices. Torrez stated, “New Mexico stood its ground, took this case to trial, and secured a verdict establishing millions of violations of our law.”

Update, October 21st: A statement from Meta has been added.