A U.S. court in New Mexico has hit Meta Platforms Inc. with a $25 billion fine. A state jury found the tech giant guilty of systematically deceiving users about personal data privacy.
The landmark ruling concludes a 2021 lawsuit against Facebook’s parent company. State attorneys argued that Meta lied to the public about who could access their private information.
Judge Rules Meta Execs “Systematically Misled” Users
State District Judge Francis Mathew handed down the massive civil penalty order. He stated that Meta executives intentionally designed messaging to mislead consumers over several years.
Internal communications involving CEO Mark Zuckerberg were highlighted during the trial.
- 43 Million Violations: Jurors found Meta guilty of committing over 43 million individual violations of New Mexico’s Unfair Practices Act.
- Calculated Fine Reduced: Statutory guidelines allowed for penalties exceeding $219 billion, but the court capped the judgment at $25 billion.
- Record Penalty: The $25 billion fine completely dwarfs the $5 billion settlement Meta reached with the FTC in 2019.
The court further ruled that the $25 billion penalty will accrue interest at 15% annually until settled.
A Clear Warning to Silicon Valley
New Mexico Attorney General Raúl Torrez praised the verdict during a press conference in Santa Fe. He described the judgment as a major turning point for tech accountability.
“This judgment sends an unambiguous message to Silicon Valley that deceptive practices and user exploitation will carry catastrophic financial consequences,” Torrez declared.
Under New Mexico state law, recovered consumer protection fines go directly to public education.
State officials noted that the penalty equates to roughly $12,000 per resident across the state.
Meta Vows to Appeal Verdict
Meta strongly rejected the court’s decision and confirmed it will immediately appeal. Company spokesman Andy Mahoney argued that the penalty sets a dangerous legal precedent.
He added that the court misapplied state consumer protection statutes.
- Business Impact: Meta claimed the Attorney General’s enforcement strategy makes operating in New Mexico nearly impossible.
- Constitutional Defense: The company argued the lawsuit attempts to penalize online speech rules rather than address direct consumer harm.
- No Direct Loss: Meta contended the state failed to prove individual users suffered direct economic losses.
Despite the record fine, Meta shares rose 2% in stock trading.
Investor confidence remains strong due to growth in the company’s artificial intelligence division.
Legal experts anticipate the appeal process could take several years to resolve.
