Meta ordered to pay $25 billion for deceiving Facebook users

Meta and Facebook logos / unsplash
Fotó: Meta and Facebook logos / unsplash

A New Mexico court has ordered Meta Platforms to pay a $25 billion fine for systematically misleading Facebook users about the protection of their personal data. The decision is linked to the Cambridge Analytica scandal and other violations of consumer protection laws.

The New Mexico Department of Justice announced the ruling on October 21. Court documents released by the department also confirm the decision.

The fine is one of the largest financial penalties ever imposed by a U.S. court against a private company. Judge Francis Matthew set the amount after a jury in September found Meta liable for nearly 44 million violations of the state's unfair trade practices law.

Under local law, the maximum penalty for each violation is $5,000. Thus, the calculated fine could have reached $219.5 billion, but the judge reduced it to $25 billion.

Additionally, the court imposed a 15% annual interest on the fine until it is fully paid. This significantly increases the company's potential financial obligations if the decision stands after appeal.

The case was brought after the Cambridge Analytica scandal, which became public in 2018. It emerged that the British consulting firm obtained access to the personal data of tens of millions of Facebook users through a third-party app. The collected information was used to build voter profiles and deliver personalized political advertising.

Estimates suggest the incident may have affected the data of approximately 87 million social network users.

However, the New Mexico authorities' claims were not limited solely to the data breach. During the trial, Facebook's statements about users' ability to control their own data, third-party developers' access to personal information, and compliance with content moderation rules were also examined.

The court concluded that for several years the company provided users with inaccurate information about the protection of their data and the controls over its use.

Meta disagrees with the ruling and intends to appeal. The company's chief legal officer, C.J. Mahoney, said the legal approach taken by New Mexico authorities effectively creates new restrictions for online platforms. Meta considers the claims unfounded and expects the ruling to be overturned.

Therefore, the final financial consequences for Meta will depend on the results of further judicial review. For now, the matter involves a court-ordered fine, not a completed payment.

Based on materials from: New Mexico Department of Justice, court decision of October 21, 2026, Axios

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