Meta, the parent company of Facebook, Instagram and WhatsApp, has been ordered to pay $25 billion to the US state of New Mexico after a judge ruled that the technology giant misled consumers about its handling of personal data and other business practices.
The ruling, delivered on Wednesday, October 21, follows a jury verdict in September that found Meta had committed more than 43 million violations of New Mexico’s consumer protection laws. Jurors determined that 26 of 29 statements made by the company and its leadership were misleading.
The case originated from allegations linked to Cambridge Analytica, a British political consulting firm that obtained personal information from millions of Facebook users without their consent. New Mexico authorities accused Meta of misleading users about who could access their data and how the company handled harmful content on its platforms.
Judge Francis Mathew calculated that the maximum penalties under state law could exceed $219 billion but reduced the award to $25 billion. The money is expected to go towards New Mexico’s school system.
Meta has rejected the ruling and indicated it will appeal. The company’s chief legal officer, C.J. Mahoney, argued that the decision could make it difficult for businesses to operate in the state and described the case as an attempt to impose new rules on online speech.
The judgment marks another major legal setback for Meta in New Mexico. In a separate case earlier this year, a jury found the company misled users about young people’s safety on Facebook, Instagram and WhatsApp, leading to $375 million in civil penalties and a further court-ordered payment into a state fund for teen mental health.
The latest ruling adds to growing legal scrutiny of major technology companies over data privacy, consumer protection and the safety of their platforms. However, Meta’s planned appeal means the $25 billion award could face further legal challenges.