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Brief Security & Trust ·

New Mexico court orders Meta to pay $25 billion over data privacy case

A judge cut the state's $220 billion award, and Meta says it will appeal.

In brief
  • A New Mexico judge set Meta's penalty at $25 billion, down from $220 billion, The Record reported. Interest of 15% a year will apply until it is paid.
  • Meta says it will appeal. The filing says Facebook misled users about how it protected their data.

The Record reported on Wednesday that a New Mexico court filing orders Meta to pay $25 billion over the Cambridge Analytica data scandal. In September, a jury found Meta broke the state's unfair practices law 43 million times. Each violation could carry a penalty of up to $5,000. The state was first awarded $220 billion, but Judge Francis Mathew cut it to $25 billion, according to the filing. Interest of 15% a year will be charged until the fine is paid. The case centres on Facebook sharing data of as many as 87 million users with Cambridge Analytica.

The Record says the case focused on what Facebook told users about its data practices. The judge wrote that Facebook kept making public promises about data control after staff had flagged that it could not keep them. Meta's chief legal officer, C.J. Mahoney, said the ruling makes it nearly impossible to do business in New Mexico. He also called the suit a tax on speech. Meta plans to appeal. The sources do not say when payment would be due, or when an appeal would be heard.

For teams that build or run software that handles personal data, the ruling ties a very large penalty to what a company tells users about its data practices. The Center for Democracy and Technology's Eric Null said companies must be accurate and clear about how they treat data.

A WebPulse Brief: a short report of an important event, written by the WebPulse Newsroom with AI assistance and checked against the reporting below. When there is more to explain, we follow up with a full story. How we use AI.

Reporting: The Record.