Meta faces $40B fine demand after new Mexico privacy verdict

Meta is facing a huge legal fight in New Mexico. The state has asked a judge to impose up to $40B in penalties after a New Mexico jury found the company broke major privacy law and consumer protection law. But the final amount is still unknown.

New Mexico seeks up to $40B from Meta

As reported by MediaPost, lawyers for New Mexico asked Judge Francis Mathew to fine Meta between $35B and $40B. The request came after a jury found that Facebook made false or misleading claims about privacy and its content rules. The case goes back to the Cambridge Analytica scandal. A third-party app collected data linked to millions of Facebook users. The scandal raised major questions about how the platform handled personal information.

The jury found close to 44 million violations of New Mexico’s Unfair Practices Act. The findings covered claims about user data, misinformation and hate speech. State law allows penalties of up to $5,000 for each violation. The number of possible violations meant the state could have sought more. New Mexico Attorney General Raul Torrez said the total exposure could have reached $219B. The state has instead asked for less.

Meta fights the massive penalty

Meta is strongly pushing back against the request. Its lawyers say a penalty of $35B to $40B would be far too large. Meta told the court that the proposed amount would raise constitutional concerns. The company argued that the state had not shown enough harm to justify such a huge payment.

Meta also wants the judge to limit the penalties to about $3.45B. Its legal team says the larger figure would be unfair and out of proportion to the alleged conduct. The state’s lawyers say the lower request was chosen to hold Meta accountable while giving the company room to appeal. The state wants the penalty to warn other large firms too.

The dispute now comes down to one key issue. How much should a company pay when a court finds millions of separate violations based on the same set of statements?

Judge prepares to make the call

Judge Francis Mathew has not yet announced the final penalty. He heard arguments from both sides during a hearing that lasted around 90 minutes. The judge is expected to issue a decision later in October. The court said the ruling on penalties would come within two to three weeks of the October 1 hearing.

The case is important well beyond New Mexico. It tests how far a state can go when using consumer protection laws against a huge technology company. It also puts fresh focus on online privacy. People often share personal details on social platforms without thinking about where that data may travel or how it may be used.

For now, Meta’s team does not have to pay $40B. That is only the amount the state is asking the judge to impose. The final decision could be lower, and the company is expected to challenge any major penalty. The next ruling will decide what comes next. Until then, this is a request, not a fine.

Author’s Opinion

The case clearly shows how costly data and trust issues can become for big tech companies. A large fine will send a strong message, but the court must also make sure the punishment is fair and fits the law.

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