A New Mexico judge has ruled that Meta, the parent company of Facebook, Instagram, and WhatsApp, must pay $25 billion for deceptive practices related to user data privacy. The ruling, following a two-week trial, found that the company had lied to the public about how it handled Facebook user data for over a decade. The fine is the largest ever imposed on Meta, which has already faced multiple lawsuits this year, including an $18 billion settlement with California over child safety concerns.
The lawsuit centers on Meta's role in the Cambridge Analytica scandal, where user data was exploited for political purposes, including the 2016 U.S. presidential election. New Mexico also accused Meta of misleading the public about its handling of hate speech and enforcement policies. The jury found the company had intentionally misrepresented its data practices, impacting millions of users.
Meta's legal team argued the fine would be unconstitutional, but the judge ruled the penalty should reflect the company's quarterly profits, emphasizing the willful nature of the violations. While the full penalty was calculated at $219 billion, the judge reduced it to $25 billion. This follows a $5 billion fine from the FTC in 2019 and a separate $1 billion penalty for misleading claims about child safety.
Despite the fines, Meta continues to invest heavily in AI, with plans to spend up to $145 billion this year. The company reported record revenue and profits, but its cash flow remains negative due to these investments. Meta's leadership has emphasized its AI strategy, including the expansion of its consumer-focused AI tool Muse, which is already used by 10 million people.