Meta Platforms has been ordered to pay a hefty sum of $25 billion by a New Mexico jury, which found that the company had misled Facebook users regarding its management of personal data and other practices related to the infamous Cambridge Analytica scandal.
The decision came from New Mexico Judge Francis Mathew on Wednesday, after jurors concluded last month that Meta had made numerous misleading statements to its audience.
In his ruling, Mathew remarked on the systemic nature of Facebook’s misconduct, indicating that it touches on the core of the company’s business practices. It’s quite alarming, really.
The now-defunct Cambridge Analytica, which was associated with President Trump’s 2016 campaign, unlawfully accessed data from approximately 87 million Facebook users through a third-party application. Users were not aware of this at all, which just adds to the whole issue.
In 2021, New Mexico initiated legal action against Meta, accusing it of deceiving users regarding the accessibility of their personal details and the management of harmful content on its platform.
During the trial, it was established that 26 of 29 statements reviewed were misleading. Moreover, the jury determined that Meta had violated New Mexico’s consumer protection laws more than 43 million times. That’s a staggering number, isn’t it?
Mathew noted that these violations could have led to penalties exceeding $219 billion, but he ultimately decided to cap it at $25 billion, despite Meta’s plea for a much smaller fine of around $3.45 billion.
New Mexico Attorney General Raúl Torrez commented that this ruling represents one of the largest financial penalties imposed on Meta by a state. He expressed satisfaction, claiming it’s a significant move towards holding large tech companies accountable.
“I think this judgment sends a clear message to everyone in the industry that we’re serious about protecting our consumers,” Torrez added.
Meta, however, has stated its intention to appeal the ruling. In a statement, C.J. Mahoney, Meta’s chief legal officer, described the ruling as excessively limiting to business operations in New Mexico. He argued that the lawsuit effectively seeks to regulate online speech more than to protect consumers.
Meanwhile, Monte Mann, a partner in business litigation, emphasized how this case sheds light on the vulnerabilities that major tech firms face under state consumer laws. He noted that while the $25 billion figure is understandably shocking, the true story lies in the broader implications for corporate accountability.
Mann anticipates that Meta will engage in a serious legal battle over the size of the penalty and its legal validity, noting that even if the amount is reduced, the case sends a strong message about the promises companies make to consumers—especially in terms of privacy.
