New Mexico court orders Meta to pay $25 billion over misleading users on privacy
In short
A New Mexico district court judge ordered Meta to pay $25 billion (about 33.2 trillion won) to the state for deceiving users about privacy and content policies in breach of the state consumer protection law. Meta says any fine should be no more than $3.4 billion and plans to appeal.
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Meta was ordered by a New Mexico court to pay $25 billion (about 33.2 trillion won) after the court found it deceived users about privacy and content management policies, Yonhap reported. Judge Francis Mathew of the district court in Santa Fe ruled that Meta violated the state consumer protection law and told it to pay the amount to the state government on 21 October, US local time. [ 1 ]
Mathew said Facebook promised users they could control their own data, but that this was false. According to Yonhap, trial found about 43.9 million violations. At $5,000 each, that would come to about $220 billion, but the court applied a substantial reduction to reach the final figure. Asia Economy reported that a jury found Meta misled users on privacy, on its handling of hate speech and misinformation and on data access through third-party apps. It said the judge noted that state law allows up to $5,000 per violation, with discretion to set an amount the court considers justified. [ 1 , 5 ]
Yonhap said the sum is five times the $5 billion fine the US Federal Trade Commission imposed on Facebook in 2019 over the same matter. Citing AP, it reported that New Mexico Attorney General Raul Torrez called the verdict among the highest ever won by a state against a company in US history. Torrez said it was a clear message to Silicon Valley and that it seemed to provide funds to build schools for the next 100 years. He added that Meta's appeal could mean it takes time before the money is finally received. Under the state constitution, the penalty goes to the state education budget. [ 1 ]
Yonhap said the case stems from an incident during the 2016 US presidential election in which a political consulting firm collected personal data of 87 million Facebook users without permission and used it for targeted political ads. Asia Economy linked the suit, filed in 2021, to the Cambridge Analytica affair. Yonhap reported that 48 US states agreed an $18 billion settlement with Meta in August, releasing it from future liability. New Mexico and Florida rejected it and continued their own legal fight. [ 1 , 5 ]
Meta argues that the fine should be no more than $3.4 billion and said it plans to appeal, according to Yonhap. Asia Economy noted that the order came on the day Meta reported third-quarter revenue of $64.6 billion, up 26% from a year earlier. [ 1 , 5 ]
Why it matters
Yonhap reports the sum is five times the $5 billion fine the US Federal Trade Commission imposed on Facebook in 2019 over the same matter. The state attorney general said an appeal could delay payment, so the final outcome is not yet settled.
Key facts
- Judge Francis Mathew of the district court in Santa Fe, New Mexico, ordered Meta on 21 October (US local time) to pay $25 billion to the state government. [ 1 , 5 ]
- The court found that Meta deceived users about privacy protection and content management policies, violating the state consumer protection law. [ 1 ]
- About 43.9 million violations were found at trial. At $5,000 each that would come to about $220 billion, but the court applied a substantial reduction. [ 1 , 5 ]
- The fine is five times the $5 billion that the US Federal Trade Commission imposed on Facebook in 2019 over the same matter, Yonhap reported. [ 1 ]
- Under the New Mexico constitution the money goes to the state education budget. [ 1 ]
- Forty-eight US states reached an $18 billion settlement with Meta in August. New Mexico and Florida rejected it and continued their own cases. [ 1 ]
- Meta says the fine should be no more than $3.4 billion and plans to appeal. [ 1 ]
Confirmed by several sources
- A New Mexico court ordered Meta to pay $25 billion over its handling of user privacy. [ 1 , 4 , 5 ]
- The case found about 43.9 million violations of the New Mexico consumer protection law. [ 1 , 5 ]
- New Mexico did not join the settlement other states reached with Meta and pursued its own lawsuit. [ 1 , 5 ]
Still unclear
- When, or whether, New Mexico will receive the money. Attorney General Raul Torrez said, per Yonhap, that Meta's appeal could mean it takes time to receive the final payment.
- Whether the amount will stand on appeal. Yonhap reports Meta argues the fine should be $3.4 billion or less and plans to appeal; no other document reports Meta's position.