In a historic legal defeat for Big Tech, a court has ordered social media giant Meta to pay $25 billion to the State Administration of New Mexico following a jury conviction for deceiving users in connection with the Cambridge Analytica scandal.
The verdict comes after a New Mexico jury found Meta guilty last month of fraudulent practices affecting more than 2.1 million state residents. According to news agency AFP, the colossal $25 billion penalty follows a separate $18 billion multi-state settlement Meta agreed to months earlier to resolve claims brought by 48 US states regarding user data misrepresentation.
Meta’s Strong Rebuttal: Denouncing the ruling as a “tax on free speech,” Meta issued a statement criticizing the magnitude of the penalty: “This ruling would make it nearly impossible to operate business in the State of New Mexico. We remain confident that we will prevail on appeal.”
Attorney General’s Declaration: New Mexico Attorney General Raúl Torrez hailed the judgment as an unprecedented triumph: “This lawsuit was about whether corporations can mislead consumers about what is being done with their personal data without facing meaningful consequences. New Mexico stood its ground.”
The Cambridge Analytica Legacy: The case traces back to the 2016 US Presidential Election, where political consultancy firm Cambridge Analytica illicitly harvested personal data from approximately 87 million Facebook users globally via the personality quiz app ThisIsYourDigitalLife. Although Facebook discovered the breach in December 2015, Meta failed to disclose the leak publicly until whistleblowers exposed it in 2018.
Child Harm & Safety Penalties ($1 Billion Cumulative): Earlier this year, a New Mexico jury ordered Meta to pay $375 million in March after concluding the platform exposed children to online predators. In August, a judge levied an additional $567 million against Meta to fund youth treatment and prevention programs.
52-State & DC Settlement ($17.7 Billion): In August, Meta agreed to pay up to $17.7 billion to settle claims filed by 52 US states and Washington D.C., accusing the company of intentionally engineering addictive algorithms targeting teenagers and illegally collecting data from children under 13.
Youth Addiction & Social Media Liability: In March, a Los Angeles jury found Meta and YouTube liable for causing social media addiction in a minor, ordering $6 million in damages. Meanwhile, TikTok agreed in September to pay at least $100 million to Alabama to settle child safety complaints.
