Meta fined $25bn for ‘lies’ over user data privacy

Meta, the parent company of Facebook, Instagram, and WhatsApp, has been ordered to pay a record-breaking $25 billion in fines for deceptive practices regarding user data privacy. A New Mexico judge ruled that the company had intentionally misled the public about its handling of Facebook user data over an 11-year period, from 2010 to 2021.

The judge found Meta's claims to be "willful" and spanning multiple years, specifically related to the Cambridge Analytica scandal where user data was exploited for political consulting purposes, including the 2016 US Presidential election. Meta's head lawyer, CJ Mahoney, stated that the ruling would make it "all but impossible to do business in the state of New Mexico" and that the company plans to appeal the decision.

The fine is the largest ever imposed against Meta, which has faced several lawsuits this year, including an $18 billion settlement with California over child safety. New Mexico's lawsuit stemmed from the Cambridge Analytica scandal and allegations that Meta misled the public on how it benefitted from content, including hate speech, and how its rules against such content were enforced.

The company's executives had previously claimed that user data was never shared or accessed by third parties without permission, even though this was untrue. The judge reduced the $219 billion penalty to $25 billion, citing Meta's profits. Meta is also investing heavily in artificial intelligence, with CEO Mark Zuckerberg stating that Muse, an AI tool, is used by 10 million people and plans to spend up to $145 billion on AI projects this year, despite reporting negative cash flow of over $2 billion.