Zain Ali Khan
LONDON: New Mexico court delivers one of the largest financial penalties in US history as technology giant vows to appeal
Meta, the parent company of Facebook, has been ordered to pay a staggering $25 billion (£18.6 billion approximately) to the US state of New Mexico after a court found that the social media giant had misled users about the protection of their personal data.
The ruling, delivered by state court Judge Francis Mathew on Wednesday, follows a jury verdict in September that found Meta had committed more than 43 million violations of New Mexico’s consumer protection laws. The case centres on allegations that the company misrepresented how it handled users’ personal information and enforced its policies against hate speech and misinformation.
The legal action dates back to 2021, following the Cambridge Analytica scandal, in which a British political consulting firm improperly obtained personal data from millions of Facebook users. The controversy raised serious questions about Facebook’s privacy safeguards and the use of personal information for political advertising.
The jury found that 26 of 29 statements made by Meta and its leadership about data privacy and related policies were misleading. The court also concluded that Facebook’s privacy controls failed to provide users with meaningful control over their information and that the company did not consistently notify users when applications misused their data.
New Mexico Attorney General Raul Torrez welcomed the outcome, describing it as a significant step towards holding powerful technology companies accountable for their actions.
Meta, however, strongly rejected the ruling and confirmed that it would appeal. The company argued that the case threatened its ability to operate in the state and accused the authorities of using consumer protection laws to restrict online speech. Its chief legal officer, C.J. Mahoney, said the company was confident it would prevail on appeal.
The court had considered a potential penalty exceeding $219 billion under state law before reducing the amount to $25 billion. The final financial liability will depend on the outcome of any appeal and further legal proceedings.
The decision represents a major legal setback for Meta, which operates Facebook, Instagram and WhatsApp. It also sends a warning to other technology companies that claims about privacy, data security and online safety may carry substantial legal consequences if they are found to mislead consumers.
The case has renewed debate over whether existing laws are sufficient to protect personal information in an increasingly digital world, where social media platforms collect vast quantities of data from billions of users.
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