Meta Faces Historic $25 Billion Fine from New Mexico Over Consumer Protection Violations

Image: Ars Technica · Source

Meta must pay $25 billion to New Mexico after being found guilty of nearly 44 million consumer protection violations, with plans to appeal the largest fine against Mark Zuckerberg's company to date.

In a landmark legal decision, Meta has been ordered to pay $25 billion to the state of New Mexico after a jury found the company guilty of almost 44 million violations of state consumer protection laws. This penalty stands as the largest fine ever imposed on Meta and its CEO Mark Zuckerberg. The significant fine arose after New Mexico’s Attorney General Raúl Torrez chose not to participate in an $18 billion multistate settlement Meta had reached earlier in the year with other states.

US District Court Judge Francis J. Mathew ruled that Meta’s repeated and willful misleading of users over more than a decade—including deceptive statements about data control, third-party misuse, misinformation, hate speech policies, and enforcement fairness—justified the highest penalty allowed under New Mexico’s Unfair Practices Act. Evidence at trial showed that Meta’s leadership, including Zuckerberg, knowingly made false public representations to exploit users’ lack of understanding about privacy and data usage, aiming to monetize personal information and compete aggressively with rivals like Twitter.

Meta had expected penalties closer to the $5 billion settlement it reached with the Federal Trade Commission following the Cambridge Analytica scandal but argued that fines exceeding $3.4 billion would be unconstitutional. However, Judge Mathew noted that previous settlements had not deterred Meta from continuing its deceptive practices.

Attorney General Torrez hailed the verdict as a milestone for consumer protection, emphasizing that the ruling demonstrated no corporation is too powerful to be held accountable. Meta announced plans to appeal the ruling, asserting the penalty is unconstitutional and claiming the enforcement approach would make it difficult to operate within New Mexico.

The fine's impact adds to Meta’s financial burdens, including close to $10 billion paid for the multistate settlement previously. Meanwhile, as Meta seeks to advance its AI initiatives, critics have highlighted the importance of vigilant enforcement amid growing concerns about consumer data misuse.

Independent observers and consumer advocates argue that this ruling sets an important precedent, underscoring the need for strong regulatory oversight over major technology companies. New Mexico’s Attorney General has promised to continue monitoring Meta’s practices and leveraging this case to uphold consumer rights in the digital age.