A court in the US state of New Mexico has ordered Meta to pay $25 billion for misleading users about Facebook's privacy practices. The amount is a civil penalty in a case related to the Cambridge Analytica scandal and the company's practices for accessing user information.
The decision was made by Judge Francis J. Matthew of the First Judicial District of New Mexico. It followed a jury verdict that found Meta's Facebook had committed 43,899,725 violations of the state's unfair trade practices law.
The case is related to Cambridge Analytica
The case stems from revelations that British consulting firm Cambridge Analytica obtained personal data from up to 87 million Facebook accounts through an external application. The information was used for political targeting during the 2016 US presidential campaign.
New Mexico prosecutors accused Meta of misleading users about who had access to their data, how the company enforced its policies against hate speech and misinformation, and how it responded after the Cambridge Analytica scandal.
According to Judge Matthew, Facebook's behavior was intentional and systematic. "Facebook promised users that they were in control of their data. That was false," the judge wrote in his ruling.
Penalty reduced from potential $220 billion
New Mexico law allows for a penalty of up to $5,000 for each violation. Given the number of violations found by the jury, the maximum amount would have reached approximately $220 billion. However, the court set the final payment at $25 billion.
The penalty will carry 15 percent annual interest until paid. The funds must be directed to the state's education system.
“This decision should send a clear signal to Silicon Valley“, said New Mexico Attorney General Raul Torres. He pointed out that companies cannot rely on their size and influence to avoid responsibility for how they use users' personal information.
Meta will appeal
Meta denies that it has been proven that users were actually misled or harmed. In court documents, the company has asked for the penalty to be limited to $3.45 billion and has called any higher amount unconstitutional.
Meta's attorney, Matthew Nicholson, said during a hearing that the jury did not find whether a New Mexico resident saw or heard the disputed claims or was harmed by them. The company plans to appeal the decision. The number of violations and the amount of the liability could change until the trial is over.
New Mexico was the only state to proceed with its own trial in the case after 48 states and territories reached a separate settlement with Meta for $18 billion and additional measures to protect minors on Facebook and Instagram.
Sources: apnews.com, investing.com, sourcenm.com