A New Mexico judge has ordered Meta to pay $25 billion in civil penalties, attributing the decision to over 43 million violations of the state's unfair practices law, according to The Verge. This ruling is tied to the Cambridge Analytica data scandal revelations and other data privacy and content moderation practices, TechCrunch reports.
Context of the Ruling
The $25 billion penalty stems from a jury finding that Meta committed 43 million violations, each carrying a $5,000 penalty, as noted by TechCrunch. The Verge adds that the total civil penalties initially exceeded $219 billion, but the judge reduced this sum to $25 billion. The judge justified the highest permissible penalty by citing the extraordinary number of willful violations, their duration and repetition, the breadth of subjects involved, and the participation of senior Facebook leadership, The Verge stated.
Background of the Cambridge Analytica Scandal
The case originated from a 2021 complaint following revelations that the UK political consultancy Cambridge Analytica had harvested data from millions of Facebook accounts. This data was used to pinpoint messages that would resonate with voters before President Donald Trump's first election, The Verge reported. TechCrunch further explains that Cambridge Analytica was part of SLC Group, a British defense contractor focused on influence operations and political work, which collaborated with the Trump campaign during the 2016 presidential election.
Broader Legal Landscape for Meta
The New Mexico Attorney General's office considers this $25 billion sum one of the largest financial penalties against a corporation in U.S. history, overshadowing other recent Meta rulings and settlements, The Verge reported. For example, Meta was previously ordered to pay nearly $1 billion in civil penalties in another New Mexico state court ruling for misleading the public about product safety. Additionally, Meta reached a separate $17.1 billion agreement with most other state attorneys general concerning kids' online safety complaints, though $5.3 billion of that amount depends on YouTube and TikTok implementing similar measures, according to The Verge.
Meta's Response and Appeal
Meta has announced its intention to appeal the decision, TechCrunch confirms. C.J. Mahoney, Meta's chief legal officer, stated that the ruling and the Attorney General's enforcement approach effectively make it impossible for Meta to conduct business in New Mexico, as reported by The Verge and TechCrunch. Mahoney further indicated that the lawsuit fundamentally aims to impose a tax on speech to enforce new rules for online content, expressing confidence that Meta will prevail on appeal.
New Mexico's Perspective
New Mexico Attorney General Raúl Torrez issued a statement emphasizing that the case concerns whether corporations can deceive consumers about their personal information without significant repercussions, asserting that New Mexico maintained its position and secured a verdict for millions of law violations, The Verge detailed. Torrez also commented that the resolution of the case could have a lasting impact, suggesting it could fund school construction for the next 100 years, according to TechCrunch.
Practical Context
The appeal process introduces uncertainty regarding the final outcome and its implications for Meta's operations within New Mexico. While the Attorney General's office celebrated securing substantial penalties, The Verge noted that Meta managed to resist many of the business changes the AG sought in the remedies portion of the kids online safety case, highlighting ongoing legal complexities for the company.
