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US — Ars Technica

Meta shocked by $25B fine after N.M. refused to join multistate settlement

Policy1 min read

A U.S. federal judge ordered Meta to pay $25 billion to the state of New Mexico. A jury found that Meta misled users about how their data was used.

What happened

A jury found Meta guilty of nearly 44 million violations of state consumer protection laws. These laws protect people who buy or use products and services. The judge then set a fine of $25 billion, the largest fine ever given to Meta. New Mexico Attorney General Raúl Torrez chose not to join an $18 billion settlement that Meta had reached earlier this year with almost all other states.

Key numbers

  • $25 billion: the fine Meta must pay to New Mexico
  • Nearly 44 million: the number of violations the jury found
  • $18 billion: the settlement Meta reached with nearly all other states
  • $40 billion: the highest fine New Mexico had asked the court to impose
  • 2 million: the number of people living in New Mexico

Why the case started

New Mexico said Meta repeatedly misled users since 2010. The issues included how users control their data, misuse of data by outside companies, false information, hate speech, and unequal enforcement of rules. The trial record showed that top leaders, including Mark Zuckerberg, knew the company, then called Facebook, was making misleading public statements.

Why it matters

The judge said Meta chose to hide information from users. The goal was to collect data people did not know they were sharing, and to compete better with Twitter, which is now called X. New Mexico argued that only a large fine that hurts Meta's stock price would push the company to make real changes. The case shows that states can take their own action against big tech companies, even when most other states agree to a settlement.

What to watch

  • Whether Meta appeals the $25 billion fine
  • Whether Meta changes how it explains data use to users
  • Whether other states follow New Mexico and bring their own cases

Glossary

Meta
The company that owns Facebook, Instagram and WhatsApp.
Attorney General
The state's top lawyer, who can bring cases to protect people in that state.
Twitter
A social media platform, now called X, that competed with Facebook.
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