Russia

Meta faces $40 bn data privacy penalty

RT English · 2026-10-02

AI SUMMARY

• What happened: Meta Platforms is facing potential civil penalties between $35 billion and $40 billion from New Mexico related to the 2018 Cambridge Analytica scandal, where it was found liable for misleading consumers about data privacy. • Why it matters: If imposed, this fine would be the largest ever on a U.S. corporation and could set a significant precedent for data privacy regulations and penalties in the tech industry. • What to watch next: A ruling from Judge Francis Mathew on the final penalty amount is expected later this month, which will determine Meta's financial liability and could influence future legal actions against tech companies.

**Meta Faces $40 Billion Data Privacy Penalty from New Mexico**

Meta Platforms, the parent company of Facebook, Instagram, WhatsApp, and Threads, is facing a potential civil penalty ranging from $35 billion to $40 billion from the state of New Mexico. This penalty could become the largest financial fine ever imposed on a U.S. corporation, according to reports from Reuters.

The legal action stems from the infamous 2018 Cambridge Analytica scandal, where it was revealed that the British political consulting firm had accessed personal data from tens of millions of Facebook users without their consent. This data was reportedly utilized to create voter profiles and deliver targeted political messaging, notably during Donald Trump’s successful presidential campaign in 2016. Following the scandal, Cambridge Analytica filed for bankruptcy, while Facebook faced numerous fines and compensation claims regarding its data handling practices.

The current case in New Mexico gained momentum after a jury found Meta liable for misleading consumers about the privacy of their data. The jury, sitting in Santa Fe, determined that Meta had willfully deceived users, resulting in over 43 million breaches of the state's consumer protection laws. These violations were found to have impacted the entire population of New Mexico, which is approximately two million residents.

In the courtroom, attorneys for Meta and the state of New Mexico presented their arguments regarding the appropriate penalty. Meta contended that the proposed fine of up to $40 billion was disproportionate to the conduct addressed in the trial. Judge Francis Mathew is expected to deliver a ruling later this month regarding the final amount that Meta will be required to pay.

This case marks another significant legal challenge for Meta in New Mexico. Earlier this year, a jury found the company liable for 75,000 violations related to child safety, resulting in penalties totaling $375 million. Furthermore, a local judge classified Meta's platforms as a “public nuisance,” imposing an additional fine of $567 million. Meta has indicated plans to appeal these rulings.

Beyond New Mexico, Meta's legal troubles extend to other jurisdictions as well. In August, the company agreed to a settlement of approximately $17 billion to resolve claims from multiple U.S. states and territories, which accused it of intentionally designing Facebook and Instagram to be addictive to children and misleading the public about the associated risks. Notably, New Mexico did not participate in this settlement, allowing its case to move forward.

Meta is not the only technology giant facing scrutiny for its data practices. Recently, TikTok and its parent company ByteDance agreed to pay $400 million to settle allegations in the U.S. that the platform illegally collected personal data from children without parental consent. Other tech companies, including Google, Apple, and Netflix, have also been involved in various privacy-related litigations.

As the legal landscape continues to evolve, the outcome of Meta’s case in New Mexico could set a precedent for future data privacy regulations and penalties in the tech industry. The ruling is anticipated to have significant implications not only for Meta but also for the broader conversation surrounding data privacy and consumer protection in the digital age.

Source: RT English
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