Meta has been ordered to pay $25 billion to the US state of New Mexico after a judge ruled that the technology giant misled the public about Facebook users’ personal data and its business practices.
The ruling, delivered on Wednesday, October 21, follows a jury verdict that found Meta responsible for more than 43 million violations of New Mexico’s consumer protection laws.
District Judge Francis Mathew reduced the potential penalty of about $219.5 billion to $25 billion, although the company intends to appeal the decision.
According to the BBC, the ruling followed a two-week trial earlier this year over allegations that Meta misrepresented how it handled users’ information and enforced its policies against harmful content.
Why New Mexico Fined Meta $25bn
The lawsuit, filed in 2021, stemmed partly from the Cambridge Analytica scandal, which exposed how personal information belonging to millions of Facebook users was obtained and used for political consulting without their consent.
Cambridge Analytica, a British political consulting firm, obtained data associated with as many as 87 million Facebook users. The information was used to develop targeted political advertising, including work connected to Donald Trump’s 2016 US presidential campaign.
New Mexico accused Meta of misleading users about who could access their personal information and how the company dealt with hate speech and misinformation on its platforms.
The jury found that 26 of 29 statements examined during the case were false or deceptive, resulting in more than 43 million violations of state law.
Judge Mathew said the violations were deliberate and continued for more than 11 years, from 2010 to 2021.
He also said communications involving senior executives, including Meta chief executive Mark Zuckerberg, were designed to mislead the public.
Meta to Appeal $25bn Judgment
Meta disputed the allegations and criticised the court’s decision.
The company’s chief legal officer, CJ Mahoney, said the ruling would make it “all but impossible to do business in the state of New Mexico”.
“At its core, this lawsuit seeks to impose a tax on speech to enforce new rules for what people can say online,” Mahoney added.
The company has said it intends to appeal, arguing that the judgment is excessive and raises concerns about freedom of speech and its ability to operate in the state.
New Mexico’s lawyers had sought penalties of up to $40 billion, while Meta argued that a penalty exceeding about $3.4 billion would be unconstitutional.
The judge calculated the potential penalty at approximately $219.5 billion before reducing it to $25 billion.
The judgment also provides for annual interest of 15 per cent until the penalty is paid.
Meta Faces Other Legal Battles
The New Mexico ruling adds to Meta’s growing legal challenges over data privacy and child safety.
In 2019, the US Federal Trade Commission imposed a $5 billion penalty on Facebook over its data privacy practices.
More recently, New Mexico secured a separate judgment against Meta over allegations that its social media platforms exposed children to harmful content and failed to adequately protect young users.
In August 2026, the state announced a judgment comprising $567 million for youth mental health-related remedies and a $375 million civil penalty, bringing the total financial exposure in that case to $942 million. The court also ordered reforms to improve protections for young users.
Meta has faced wider legal scrutiny over the potential effects of social media platforms on children’s mental health and safety.
Meta Increases Artificial Intelligence Spending
Despite its legal challenges, Meta continues to invest heavily in artificial intelligence (AI) as it competes with other technology companies.
During a call with financial analysts, Zuckerberg said the company’s consumer-focused AI tool, Muse, was already being used by 10 million people.
“Growing Muse to serve billions of people is both our mission and our strategy,” he said.
Meta expects to spend at least $135 billion in 2026, largely on AI projects, with total expenditure potentially reaching $145 billion.
The scale of the investment has raised questions about the company’s cash flow, although its revenue continues to grow.
The company reported a 26 per cent increase in revenue between July and September compared with the same period a year earlier, reaching approximately $64.5 billion.
Meta’s continued AI spending highlights its determination to expand its technology capabilities even as it faces substantial legal penalties and challenges over its business practices.
