Meta Hit with $25 Billion Penalty Over Data Privacy Violations
A judge in New Mexico has ordered Meta, the company founded by Mark Zuckerberg, to pay a staggering $25 billion for misleading users regarding data privacy related to the Cambridge Analytica scandal.
This significant ruling concluded a case initiated by the state’s attorney general in 2021. It was revealed that Cambridge Analytica, a UK-based firm, improperly extracted personal data from as many as 87 million Facebook users via a third-party application.
On September 25, a jury determined that Meta had committed more than 43 million violations of state consumer protection laws by providing misleading information surrounding the incident. Each violation is subject to a penalty of $5,000, leaving the judge, US District Judge Francis Mathew, to decide on the appropriate damages to impose.
Judge Mathew pointed out in his 20-page decision that the extent of Facebook’s misconduct, which appeared to be systematic and long-standing, cuts to the heart of its core business practices.
The legal issues stemmed from findings published in 2018, where it was reported that Cambridge Analytica had acquired personal information from Facebook users without their knowledge, using it to profile voters in the United States.
While the awarded $25 billion is a significant amount, it is actually just a small fraction compared to what Meta could have faced under New Mexico law, which allowed for penalties as high as $219 billion. State officials had previously pushed for a penalty between $35 billion and $40 billion.
Evidence presented to the jury showed that out of 29 statements made by Meta executives concerning the data leak, 26 were found to be misleading.
Experts believe that the judgment is likely to hold up on appeal. Vincent Joralemon, a Senior Fellow at the Berkeley Center for Law & Technology, indicated that the case’s details strongly implicate Meta, and he doesn’t foresee much grounds for dispute regarding the findings.
He suggested that while the total damages could potentially be lowered upon appeal, Judge Mathew had done a commendable job in managing to keep the figure reasonable—having already reduced it from the maximum possible penalty.
Before the judge’s ruling, Meta argued that penalties should not exceed $3.45 billion, claiming higher amounts could drive businesses away from New Mexico.
CJ Mahoney, Meta’s chief legal officer, reiterated this position, stating that the lawsuit essentially seeks to impose restrictions on free speech online. He asserted that Meta would keep striving to provide a safe platform for Americans and support small businesses.
This ruling adds to Meta’s growing list of legal challenges, as the company faces numerous lawsuits related to its business methods, data privacy, and online safety practices. New Mexico has emerged as a central player in this legal campaign, previously imposing a $375 million penalty on Meta for misleading the public about child safety on its platforms and exposing children to online risks. An additional $567 million was added in penalties from that case in August.
Separately, Meta agreed to an unprecedented $18 billion settlement in August with 48 state attorneys general who alleged that the company contributed to a mental health crisis among teenagers driven by social media addiction. As part of this settlement, Meta allocated $459 million to cover penalties related to Cambridge Analytica.
The ruling from New Mexico has been labeled a “landmark penalty” by Fairplay, an organization focused on online safety. Its executive director emphasized that Meta’s blatant disregard for privacy laws and willingness to deceive should concern everyone, regardless of political affiliations.
He commended New Mexico for taking decisive action against the company, highlighting that internal documents have shown that Meta’s primary concern appears to be its financial bottom line.
