43 million ‘willful violations’: Here’s why Meta has been ordered to pay $25 billion in privacy case

Meta has been ordered to pay $25 billion for misleading New Mexico residents about privacy. The court penalty follows findings involving user information and harmful content on its services. The case grew from the Cambridge Analytica scandal, which emerged in 2018.

A Santa Fe jury found Meta liable in September. It concluded that the company had misled residents about how it collected and protected their personal data, CNBC reported. Jurors also found misleading claims about preventing the spread of harmful information.

The jury found an “extraordinary number of willful violations”. They identified more than 43 million such violations of New Mexico’s unfair practices act. Each violation carried a possible civil penalty of up to $5,000. Judge Francis Mathew decided the final amount.

Quick answers to key questions

•5 QUESTIONS

1

What was the New Mexico privacy case against Meta about?⌵

New Mexico accused Meta of misleading residents about who could access their personal data and how it handled harmful content, including hate speech and misinformation. A jury found the company liable for misleading statements.

2

Why was Meta ordered to pay $25 billion for more than 43 million violations?⌵

Jurors identified more than 43 million willful violations of New Mexico’s unfair practices law, which allows penalties of up to $5,000 per violation. Judge Francis Mathew set the final penalty at $25 billion, reducing an initial figure of $219.5 billion.

3

How is the Cambridge Analytica scandal connected to Meta’s New Mexico case?⌵

The lawsuit followed revelations that Cambridge Analytica allegedly accessed personal information from as many as 87 million Facebook users through a third-party app. The case examined Meta’s handling of users’ data and its statements about privacy.

4

Will Meta appeal the $25 billion New Mexico penalty?⌵

Meta’s chief legal officer said the company was confident it would win on appeal. Meta disagreed with the ruling and criticised the penalty.

5

How will interest on Meta’s $25 billion penalty accrue?⌵

Interest will build at 15% annually until Meta pays the penalty in full.

The 21 October filing showed an initial award of $219.5 billion, reduced to $25 billion. Interest will build at 15% annually until Meta pays the penalty in full.

Judge Mathew cited deliberate, repeated violations involving senior Facebook leaders. He also pointed to the duration of the conduct and the number of residents reached. The findings covered several subjects and showed intentional, systematic misstatements, he said.

The judge also criticised Facebook’s response after the Cambridge Analytica revelations. He said it failed to conduct the comprehensive investigation it had promised.

According to the filing, senior executives pressured staff to keep investigation costs down. Inadequate resources and investigative methods also weakened the examination.

Another factor was reluctance to establish expectations for future investigations. Judge Mathew described the internal inquiry as deliberately ineffective.

The scandal centred on allegations involving political consulting firm Cambridge Analytica. Allegedly, it improperly accessed information belonging to 87 million users. The episode raised questions about Facebook’s handling of personal information.

Meta earlier agreed to a $725 million class action settlement in 2022. That lawsuit likewise arose from Cambridge Analytica.

Separately, New Mexico’s child safety case brought further financial orders against Meta. The company disagreed with that ruling and planned an appeal.

Meta’s chief legal officer, C.J. Mahoney, criticised the penalty and expressed confidence about winning an appeal. He argued the ruling made doing business in New Mexico almost impossible. He also claimed the lawsuit sought to tax speech and control online expression.

“This ruling, and the Attorney General’s approach to this enforcement, makes 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,” CNBC quoted him as saying.

New Mexico Attorney General Raúl Torrez said powerful technology companies remained answerable to the law. He said the order showed violations carried real consequences.

“For too long, powerful technology companies have operated as though their size and influence put them beyond the reach of the law. This penalty order demonstrates that those violations carry real consequences,” CNBC quoted Torrez as saying.

Former attorney general Hector Balderas filed the state’s lawsuit in 2021. Torrez later oversaw the trial.

New Mexico stayed outside an August settlement involving Meta and other state attorneys general. That agreement totalled nearly $17 billion and resolved various privacy claims alongside separate federal litigation. The federal case concerned child safety and mental health.

Sounak Mukhopadhyay covers trending news, sports and entertainment for LiveMint. His reporting focuses on fast-moving stories, box office performance, digital culture and major cricket developments. He combines real-time updates with clear context for everyday readers. <br><br> Sounak brings newsroom experience across breaking news, explainers and long-form features. He has a strong emphasis on accuracy, verification and responsible storytelling. His work tracks audience behaviour, celebrity influence and the business of sport and cinema. He helps readers understand why a story matters beyond the headline. <br><br> Sounak has contributed to widely read digital publications. He continues to build a body of journalism shaped by consistency, speed and editorial clarity. He is particularly interested in the intersection of media, popular culture and public conversation in contemporary India. <br><br> At LiveMint, he writes daily coverage as well as analytical pieces that interpret numbers, trends and cultural moments in accessible language. His approach prioritises factual depth, balanced framing and reader trust. The reporting aligns with modern newsroom standards of transparency and credibility. <br><br> Outside daily reporting, he explores storytelling across formats including podcasts, filmmaking and narrative non-fiction. Through his journalism, Sounak aims to document the rhythms of modern entertainment and sports while maintaining rigorous editorial integrity. <br><br> Sounak continues to develop audience-focused journalism that connects speed with substance in a rapidly-changing information environment. His work seeks clarity, trust and lasting public value in every story he reports.

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