Meta, the parent company of Facebook, Instagram and WhatsApp, faces a $25 billion penalty in New Mexico, a US state. The decision followed a jury verdict that found Meta had misled the public about its handling of Facebook user data. The case focuses on the company’s management and communication of user data, while Meta’s new open-weight AI model highlights its broader efforts to expand its artificial intelligence technology.
Meta Ordered to Pay $25 Billion in Facebook Data Privacy Case
Judge Francis Mathew issued the decision on Wednesday, following court proceedings that began several months ago. He said Meta had engaged in these practices from 2010 to 2021, leading to the Meta $25 billion fine for user data privacy.
How the Cambridge Analytica Case Started
The British political consulting firm Cambridge Analytica collected personal data from up to 87 million Facebook users through a third-party app without their permission. The firm used this data for political work, including activities linked to Donald Trump’s successful 2016 presidential campaign. In 2021, the State of New Mexico sued Meta for deceiving its users regarding the access to the personal data of individuals. The State also accused the firm of deceiving people about the hate speech and misinformation on its platform.
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A jury found on September 25 that 26 of the 29 claims made by Meta and its executives were misleading. The jury identified more than 43 million violations of New Mexico’s consumer protection laws. State law allows penalties of up to $5,000 per violation, bringing the potential total to more than $219 billion. However, Judge Mathew reduced the penalty to $25 billion in the Meta $25 billion Facebook privacy fine case. New Mexico’s attorneys had sought a penalty of $35 billion to $40 billion. Meta argued that any fine exceeding $3.45 billion would be discriminatory and could violate its legal rights.
Meta Plans to Appeal the Decision
Raúl Torrez, Attorney General of New Mexico, said the decision indicated that big tech companies should also be governed by the law no matter their size. According to him, the state would keep on striving to protect the consumer rights. Meta dismissed the decision. In his statement, CJ Mahoney, Chief Legal Officer of Meta, said that the decision would make it almost impossible for the company to function in New Mexico. He further said that this particular case might affect the way content is shared on social media.
Meta faces several lawsuits over data privacy, including the Meta $25 billion fine case in New Mexico. In 2019, the US Federal Trade Commission fined the company $5 billion over data privacy issues. In a separate New Mexico case, authorities accused Meta of misleading users about the safety of its social media platforms for children. The company had to pay $375 million in civil penalties. The court also ordered Meta to pay an additional $567 million to support teenagers’ mental health in the state.
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Meta Continues to Invest in Artificial Intelligence
Even amid legal expenses, Meta continues to invest heavily in AI. The company expects to spend $135 billion to $145 billion in 2026, primarily on AI projects. Meta also reported strong financial performance, with revenue rising 26% year over year to nearly $64.6 billion in the July–September quarter and net income reaching around $9.8 billion. The Meta $567 million youth safety case adds to the company’s legal challenges as it expands its AI investments. The outcome of Meta’s appeal will help determine its legal position in New Mexico.
