Meta hit with $25 bn penalty for misleading facebook users
AgenciesA judge ordered Meta to pay New Mexico $25 billion after a jury found the company liable for deceiving users about privacy on Facebook, marking the biggest fine ever agains...
A New Mexico judge has ordered Meta to pay a staggering $25 billion in penalties for deceiving users about privacy on Facebook, marking the largest fine ever imposed on the tech giant. The ruling came after a jury found Meta liable for over 43 million violations of New Mexico consumer protection laws for making false statements about how it handled users' personal data.
Facebook's executives consistently misled users about the platform's workings, promising them control over their data when, in reality, this was not true. The case stemmed from the 2016 election, when political consulting firm Cambridge Analytica harvested Facebook data to create targeted political ads. Judge Francis J. Mathew stated that Facebook's claim of user control over data was false.
State Attorney General Raúl Torrez emphasized that the ruling serves as a warning to tech companies that New Mexico will hold them accountable, signaling an unambiguous message to Silicon Valley. Meta expressed disappointment, stating that the ruling and Torrez's enforcement approach make it "all but impossible to do business" in the state.
The company, with a market value of $1.8 trillion and annual revenue of over $200 billion, traded up 2 percent after the announcement. Meta has faced a $18 billion settlement with other states and territories in the past. However, New Mexico chose to pursue the case independently, seeking fines of $35 billion to $40 billion. The awarded $25 billion will be used for education spending under the New Mexico Constitution.
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