Facebook parent Meta Platforms has been ordered to pay a staggering $25 billion (approximately ₹2.36 lakh-crore) in penalties after a US court found that the social media giant had systematically misled users about how their personal data was accessed and protected.
The ruling, delivered by a New Mexico judge on Wednesday, October 21, stems from the Cambridge Analytica scandal, which exposed how personal information belonging to millions of Facebook users was obtained without their consent and allegedly used for political targeting during the 2016 US presidential election.
The penalty is among the largest imposed on a technology company in the United States and adds to Meta's growing legal and financial challenges over privacy and user safety.
Judge Francis Mathew ordered Meta to pay $25 billion after a jury concluded that the company had repeatedly misled consumers about its data practices.
The judge initially determined that penalties exceeding $219 billion could be justified under New Mexico's consumer protection laws. However, the amount was reduced to $25 billion after considering the circumstances of the case.
In its September 25 verdict, the jury found that 26 of the 29 statements made by Meta and its leadership concerning privacy, misinformation and platform policies were misleading.
Jurors identified more than 43 million violations of state consumer protection laws. New Mexico law allows penalties of up to $5,000 for each violation, potentially exposing companies to substantial financial liabilities.
The case traces its origins to the Cambridge Analytica scandal, which emerged in 2018 and raised worldwide concerns about Facebook's handling of user information.
Cambridge Analytica, a British political consulting firm associated with Donald Trump's 2016 presidential campaign, obtained personal data from as many as 87 million Facebook users through a third-party application.
The information was collected without the consent of many affected users and was used to develop political targeting strategies. Following the revelations, New Mexico's attorney general filed a lawsuit against Meta in 2021, accusing the company of misleading users about who could access their personal information.
The state also alleged that Meta had failed to communicate its internal policies transparently and had tolerated harmful content when doing so served its commercial interests.
Meta has challenged the findings and argued that the penalties are excessive. In court filings, the company sought to limit the financial penalty to $3.45 billion, warning that substantially higher penalties could discourage businesses from operating in New Mexico.
Meta also maintained that it does not sell users' personal data and argued that the state had failed to establish that individual consumers were actually misled.
Following the ruling, Meta indicated that it intends to appeal the decision, raising questions about the final financial implications for the company.
The latest judgment comes as Meta faces increasing legal scrutiny over the impact of Facebook and Instagram on user privacy, online safety and children's mental health.
In August, the company agreed to pay $17 billion to settle a nationwide lawsuit brought by several state attorneys general. The case alleged that Meta had deliberately designed addictive social media products that harmed young users.
The company has also faced separate legal proceedings in New Mexico concerning children's safety. In March, a Santa Fe jury ordered Meta to pay $375 million in civil penalties after finding that it had misled users about safety measures on Facebook, Instagram and WhatsApp.
In a subsequent phase of the proceedings, a judge directed Meta to contribute another $567 million to a state fund supporting teenage mental health and introduce additional safeguards for younger users.
Despite mounting legal expenses, Meta continues to report strong growth in its advertising-driven business. The company's quarterly revenue increased 26% to $64.6 billion, reflecting sustained demand for digital advertising across its platforms.
However, its net income fell short of Wall Street expectations after the company accounted for a $9.9 billion settlement payment in the United States.
The latest $25 billion judgment highlights the potentially substantial financial consequences of data protection failures, even for technology companies with significant revenues and global operations.
The outcome of Meta's planned appeal will determine whether the company must ultimately pay the full amount.
