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A court in New Mexico, US, has ordered Meta Platforms, the parent company of Facebook, Instagram and WhatsApp, to pay $25 billion following findings that the company repeatedly deceived consumers about how their personal information was handled.
The ruling follows a legal battle involving Facebook’s historic privacy practices and allegations that the company failed to provide users with accurate information about access to their data.
New Mexico Attorney General Raúl Torrez welcomed the decision, describing it as an important step toward holding major tech companies accountable for consumer protection violations.
Meta contested the sentence and announced his intention to appeal.
The Court finds widespread violations of the Consumer Protection Act
Judge Francis Mathew ruled that Meta had committed millions of violations of New Mexico’s Unfair Practices Act over a long period.
The court found that the company’s conduct involved misrepresentations about Facebook users’ personal data and the circumstances in which third parties could access it.
According to the ruling, the violations concerned activities between 2010 and 2021.
The court concluded that the conduct was intentional, based in part on the company’s internal communications and other evidence examined during the proceedings.
The judge imposed a $25 billion civil penalty after considering the extent and duration of the violations.
The Cambridge Analytica scandal is part of the context of the case
The legal dispute is linked to long-standing concerns about Facebook’s data-sharing practices, including issues that emerged during the Cambridge Analytica scandal.
That controversy involved the collection of information associated with millions of Facebook users and its use in political advice.
The scandal attracted international attention because Cambridge Analytica worked on political campaigns, including activities related to the 2016 US presidential election.
It also raised questions about whether users understood how information collected through Facebook applications could be accessed or used by outside organizations.
The New Mexico case examined broader allegations about Facebook’s representations to consumers regarding privacy and third-party access to personal data.
The New Mexico attorney general welcomes the ruling
Attorney General Raúl Torrez said the ruling shows that major tech companies may face legal consequences when their business practices violate consumer protection laws.
The state’s legal team argued that Meta had provided misleading assurances about how Facebook users’ information was protected.
Prosecutors argued that the alleged conduct affected large numbers of consumers over several years.
Torrez said the result reinforces the principle that companies must comply with the law regardless of their size or market influence.
Judge reduces potential fine to $25 billion
New Mexico authorities had sought substantial financial penalties based on the number of alleged consumer protection violations.
The court’s calculations produced a much larger potential amount before the judge set a $25 billion penalty.
Judge Mathew considered the severity of the violations and the legal issues surrounding the appropriate size of the award.
Meta had argued that an excessively high financial penalty would be unconstitutional.
The final amount remained well above the level considered legally acceptable by the company.
Meta rejects the sentence and plans to appeal
Meta’s chief legal officer, CJ Mahoney, criticized the decision and indicated that the company would challenge it through the appeals process.
The company argued that the fine imposed an unreasonable burden and raised serious legal concerns.
The expected appeal means the ruling could be subject to further judicial review.
As a result, the $25 billion figure represents a court-ordered fine rather than confirmation that the full amount has already been collected.
Meta has faced previous privacy sanctions
The New Mexico ruling adds to a series of legal and regulatory challenges involving Meta’s handling of user information.
In 2019, the US Federal Trade Commission imposed a $5 billion fine on Facebook following an investigation into its privacy practices.
The company has also faced separate lawsuits regarding the safety of children using its platforms.
These cases involve several legal charges and should not be treated as a single proceeding.
The ruling raises questions about tech companies’ data practices
The ruling highlights the continued scrutiny of how major digital platforms collect, manage and share personal information.
Social media companies maintain large amounts of user data, making transparency and compliance with privacy laws important consumer protection issues.
The New Mexico case also illustrates the financial consequences that can result from findings of repeated violations.
For Meta, the immediate next step is the appeal proposal, which could determine whether the sanction will be confirmed, modified or cancelled.
The ruling does not mean that Facebook, Instagram or WhatsApp have been ordered to stop working.
The case remains an important development in the broader debate over consumer privacy and liability in the tech industry.
Meta’s response
Meta intends to appeal the decision. His objections include arguments about the size of the fine and constitutional protections against excessive financial penalties.
The ruling therefore represents an important legal development, but the final amount Meta may be required to pay could change following an appeal.
Background: How the Cambridge Analytica scandal led to the case
The controversy became widely known in 2018 after revelations that Cambridge Analytica had obtained personal information associated with as many as 87 million Facebook users.
The political consultancy has used data-driven techniques in connection with political campaigns, including work associated with the 2016 US presidential election.
New Mexico filed a lawsuit in 2021, challenging Facebook’s claims about data privacy and third-party access.
The prosecution went beyond Cambridge Analytica. The panel also found misleading statements regarding Facebook’s handling of misinformation, hate speech and enforcement of its community standards.
