A jury in the state of New Mexico ordered Meta Platforms Inc. to pay a $25 billion civil penalty in a case related to the Cambridge Analytica scandal. The decision was handed down in proceedings concerning violations of consumer protection laws.
Jury verdict: number of violations and grounds
The jurors found that Meta violated the state’s consumer protection law more than 43 million times. The ruling was based on broad statements by the company and its leadership about combating hate speech and handling user data, as well as the transfer of data to Cambridge Analytica, which was used to target voters in 2016.
$25 billion is being described as one of the largest verdicts of its kind in US history. The amount far exceeds the $18 billion total settlement Meta reached this summer with a majority of state attorneys general over their claims.
Calculation of the fine and the parties’ positions
Judge Francis Matthew imposed the maximum fine under the New Mexico Unfair Practices Act — $5,000 for each violation. Multiplying that amount by the number of violations found would have resulted in a total fine of $219 billion, but the judge reduced it to $25 billion; the prosecution had sought $35–40 billion.
According to the judge, Facebook’s violations, which were spread to the public over years in a systematic way, go to the very core of the company’s basic business practices. Meta’s chief legal officer K. Jay Mahoni said the company is confident it will prevail on appeal and that “the lawsuit is effectively an attempt to impose a tax on speech to set new rules about what people can say online.” Mahoni also said: “This ruling and the attorney general’s approach to enforcement effectively make it impossible to do business in the state of New Mexico.”
Payment terms and the prosecution’s reaction
New Mexico Attorney General Raúl Torres called the ruling “one of the largest, if not the largest, verdicts against a company at the state level in US history” at a press conference. The $25 billion awarded far exceeds the typical annual revenues of the state budget.
The fine will accrue 15% annual interest until fully paid. Meta has already said it intends to appeal the decision.
