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New Mexico judge hits Meta with $25 billion penalty over Facebook user privacy deception

Engadget

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AI summary of the reporting below · Updated · How we work

A Santa Fe judge has ordered Meta to pay New Mexico $25 billion in civil penalties following a September jury verdict that found Facebook misled residents regarding user privacy, data access, and content moderation. The case originated from a 2021 lawsuit tied to the fallout of the Cambridge Analytica scandal, with jurors concluding the company committed roughly 44 million violations of the state's Unfair Practices Act. [1][4][5][6]

Each violation carried a statutory maximum of $5,000, creating an exposure of about $219 billion. State attorneys argued for $35 billion to $40 billion, while Meta pushed to cap any penalty at $3.45 billion. District Judge Francis J. Mathew ruled Facebook's internal investigations were willfully ineffective and chose the $25 billion figure, which accrues interest at 15 percent annually and is slated to fund New Mexico's public school system. [1][4][5]

The penalty dwarfs the $5 billion settlement Facebook reached with the Federal Trade Commission in 2019. Meta plans to appeal the judgment, with chief legal officer C.J. Mahoney calling the enforcement an unconstitutional tax on speech that makes operating in New Mexico nearly impossible. Meanwhile, New Mexico Attorney General Raúl Torrez praised the decision as proof that Big Tech firms cannot escape local legal accountability. [1][2][4][6]

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7 outlets