Meta, the parent company of Facebook, Instagram and WhatsApp, has been ordered to pay US$25 billion in damages following a court ruling that found the technology giant had repeatedly misled the public about its handling of users’ personal data.
The ruling was delivered by New Mexico Judge Francis Mathew on Wednesday after a two-week trial earlier this year, with the court finding that Meta had engaged in unlawful practices for more than 11 years, between 2010 and 2021.
According to the ruling, communications involving senior executives, including chief executive Mark Zuckerberg, were designed to mislead the public about how Facebook user data was accessed and shared with third parties.
The jury found that Meta had violated state laws more than 40 million times, affecting approximately two million residents of New Mexico.
The lawsuit was partly rooted in the Cambridge Analytica scandal, in which data from millions of Facebook users was used for political consulting, including activities linked to the 2016 United States presidential election.
New Mexico also accused the company of misleading users about how it moderated hate speech and enforced its platform policies.
State Attorney General Raúl Torrez said the ruling demonstrated that powerful technology companies could be held accountable for their actions.
“For too long, powerful technology companies have operated as though their size and influence put them beyond the reach of the law,” Torrez said.
Meta has rejected the allegations and announced plans to appeal the decision.
The company’s head lawyer, CJ Mahoney, argued that the ruling would make it extremely difficult to operate in New Mexico, describing the lawsuit as an attempt to impose restrictions on online speech.
The US$25 billion penalty is the largest fine imposed against Meta, surpassing previous settlements and penalties over privacy and child safety concerns.
Despite the legal challenges, Meta continues to invest heavily in artificial intelligence, with the company expecting to spend between US$135 billion and US$145 billion this year, largely on AI-related projects.
The ruling adds to growing scrutiny of major technology companies over data privacy, online safety and corporate accountability.