The record penalty follows a September jury verdict, and Meta plans to appeal
The Meta $25 billion fine, ordered on 21 October, is the largest penalty against Facebook’s owner. TF explains the ruling, the appeal and the missing detail on the sum.
What’s Happening & Why It Matters
The Ruling
Judge Francis J. Matthew of New Mexico ordered Meta to pay $25 billion (€22 billion), according to PBS NewsHour. In September, a jury found Meta liable for deceiving users about privacy. Jurors assessed 34 misleading statements and found more than 43 million violations of New Mexico consumer protection law.
The jury rejected the state’s claim of false promises to remove harmful content, including COVID-19 misinformation. The case centred on Cambridge Analytica. A third-party quiz harvested data from about 87 million Facebook profiles and sold the data to the political consulting firm.
How the Sum Compares
New Mexico sought $35 billion to $40 billion (€31 billion to €36 billion). Meta’s lawyers argued for no more than $3.4 billion (€3.0 billion) and said a larger award would breach due process. The FTC fined Facebook $5 billion (€4.5 billion) in 2019 over the same scandal.
AppleInsider reports each violation carries a penalty of up to $5,000. No report shows how the court reached $25 billion. By TF arithmetic, the sum is about $580 per violation across 43 million violations.
Meta’s Case
Meta plans to appeal, according to PBS and MPR News. Meta says the state counted violations by audience size, a method the company calls unprecedented. Meta says the state did not prove harm. Interest accrues during the appeal, and an appeal court could cut the violation count.
Sources says Meta had not replied to a request for comment when the story ran. PBS reports Meta shares rose about 2% after the announcement.
Where the Money Goes
Attorney General Raúl Torrez called the judgment a warning to Silicon Valley. Under the New Mexico Constitution, consumer protection fines fund state education spending. Torrez acknowledged the money will stay tied up during the appeal. The state seeks an injunction against similar practices.
The Wider Picture
Meta settled with other states in August. Reports give $17 billion to $18 billion (€15 billion to €16 billion). New Mexico and Florida did not sign. PBS says the deal released Meta from future liability tied to the Cambridge Analytica breach for the signing states.
TF covered state-level pressure on tech in 8 US States Accuse OpenAI of Coaching Self-Harm. Norway targets tech firms over children in Norway Extends Proposed Under-16 Social Media Ban to Online Games and Messaging Apps.
My take: The penalty is large for a state case. Meta will contest the sum on due process and the violation count. The outcome will set a template for other states. Appeal courts may trim awards built on millions of counted violations.
TF Summary: What’s Next
Meta will file its appeal, and interest will accrue meanwhile. The court has to decide on the requested injunction. Appeal judges will test the violation count and the due process argument. Other states may copy New Mexico’s counting method.
MY FORECAST: An appeal court will cut the $25 billion sum, or the number of violations, by mid-2028. Meta will fight any injunction on privacy practices. Another state will seek a large penalty using the same counting method within a year.
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