Meta Faces Record $25 Billion Penalty Over Decade-Long Data Misrepresentation Claims

Meta Platforms, owner of Facebook, Instagram, and WhatsApp, has been ordered to pay a record-breaking $25 billion fine following a federal court ruling in New Mexico over its data privacy practices.

A U.S. District Judge in New Mexico ruled on Wednesday that Meta must pay the monetary penalty after a two-week trial earlier this year concluded that the company misled users about how their personal data was collected and shared.

“The pattern of deception extended across Meta’s operations and directly undermined public trust,” the judge stated, emphasizing that the misrepresentations reached the core of the company’s business model.

In response, Meta’s legal team argued that the decision places an undue burden on the company’s ability to operate within the state. The firm has announced plans to appeal the ruling.

This latest penalty marks the highest financial sanction yet imposed on Meta, which has faced numerous legal challenges throughout the year—including an $18 billion settlement with California over concerns related to child safety online.

The lawsuit originated from New Mexico’s investigation into Meta’s role in the Cambridge Analytica controversy, where user data was improperly harvested for political campaign purposes during the 2016 U.S. presidential election.

According to state attorneys, Meta repeatedly assured consumers that their information would not be accessed by third parties without explicit consent—an assurance contradicted by evidence presented during the trial.

Prosecutors argued that virtually every resident in New Mexico—approximately two million individuals—was affected by these misleading claims. A jury determined that Meta violated state privacy statutes over 40 million times.

“For far too long, Big Tech giants have acted as if they are above the law,” said New Mexico Attorney General Raúl Torrez following the verdict. “This outcome sends a powerful message: no entity is immune from accountability.”

While plaintiffs initially pursued up to $40 billion in penalties, Meta contested any figure exceeding $3.4 billion as unconstitutional.

Judge Francis Mathew justified the substantial award by citing willful violations spanning over eleven years—from 2010 through 2021—and internal communications suggesting deliberate efforts to obscure true data-sharing policies.

Although the total potential damages equated to roughly $219 billion based on thousands of infractions, the judge reduced the final sum to align more closely with Meta’s quarterly earnings.

A Meta spokesperson declined immediate comment when contacted for response.

Beyond this case, New Mexico has previously taken action against Meta for allegedly misleading the public about risks associated with youth exposure on its platforms. In a separate ruling earlier this year, another judge likened Meta’s conduct to environmental pollution, citing psychological harm and vulnerability among minors.

Additional lawsuits filed jointly by California and other states addressed similar concerns regarding inadequate safeguards for young users. These cases concluded with settlements that did not involve financial penalties or admissions of guilt but brought an end to protracted litigation.

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