Meta Faces $25 Billion Penalty in Privacy Case
A New Mexico judge has ordered Meta Platforms to pay $25 billion in civil penalties after a jury found that the company misled consumers about data privacy. The October 21, 2026, ruling marks a major legal setback for Facebook, Instagram, and WhatsApp’s parent company.
The case centres on allegations that Meta misrepresented how it handled personal information and protected users. Moreover, the ruling follows years of scrutiny over the Cambridge Analytica scandal and third-party access to Facebook data. Meta has said it intends to appeal the decision.
Jury Finds Millions of Consumer Protection Violations
New Mexico filed its lawsuit in 2021 after reports revealed that Cambridge Analytica obtained personal data from as many as 87 million Facebook users. The British political consulting firm used data gathered through a third-party app to profile voters and target political ads.
The state argued that Meta misled users about who could access their information. Officials also challenged the company’s handling of hate speech, misinformation, and other harmful content. Meta disputed the allegations, arguing that the state had not shown consumers were actually misled.
In September, a jury found 26 statements made by Meta and its leadership misleading. The jury found more than 43 million violations of New Mexico’s consumer protection law. As a result, the court had to determine the financial penalty under state law.
Judge Reduces Potential Penalty From $219 Billion
Judge Francis Mathew determined that the violations could justify a penalty exceeding $219 billion under New Mexico law. However, he reduced the final amount to $25 billion. The state had sought between $35 billion and $40 billion, while Meta urged the court to cap the penalty at $3.45 billion.
New Mexico Attorney General Raúl Torrez welcomed the decision, describing it as a warning to major technology companies. Meanwhile, Meta’s chief legal officer, C.J. Mahoney, criticised the ruling and said the company expects to prevail on appeal.
The penalty adds to Meta’s growing legal challenges over privacy and platform safety. In 2019, the company agreed to pay the US Federal Trade Commission $5 billion over privacy violations linked to the Cambridge Analytica scandal. Meta also faces separate lawsuits over the effects of its platforms on young users.
The New Mexico judgment also highlights the financial risks technology companies face when courts find violations of consumer protection laws. However, the final outcome may change if Meta succeeds in its appeal. For now, the ruling places data privacy and corporate accountability at the centre of the company’s legal challenges.
