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Category

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Meta just got hit with a $25bn fine for lying about your data

Meta just got hit with a $25bn fine for lying about your data

Photo: Julio Lopez

Meta just got handed a $25 billion fine for lying, and the judge who wrote the order made clear this wasn't a close call.

Judge Francis Mathew of New Mexico ruled this week that Meta spent more than eleven years, from 2010 to 2021, systematically deceiving the public about how Facebook handled user data. The violations were "willful," he wrote. Communications involving senior executives, including Mark Zuckerberg, were "designed to mislead the public." The lies, Mathew added, went "to the heart of Facebook's core business practices."

What actually happened

The lawsuit traces back to the Cambridge Analytica scandal, in which a political consulting firm used Facebook user information for its work on multiple campaigns, including work connected to the 2016 presidential election. New Mexico's lawyers argued that Meta executives repeatedly told users their data was never sold or shared with third parties. In reality, it had been.

The judge calculated the full scope of Meta's violations at $219 billion, based on thousands of breaches of state law. He reduced the penalty to $25 billion, roughly equivalent to one quarter of Meta's profits. Meta did not respond to requests for comment before publication.

Why this one lands differently

Meta has faced lawsuits before. This year alone it agreed to an $18 billion settlement with California over child safety. A separate New Mexico case, also this year, produced a nearly $1 billion fine for misleading the public about the safety of its platforms for children. In that ruling, the presiding judge compared Meta to an industrial polluter, with its product being "the psychological harm and sexual exploitation of children."

But the $25 billion figure is the largest fine the company has ever faced, and the reasoning behind it is broader than a single policy failure. The judge did not find that Meta made a mistake or cut corners. He found that the company built a decade-long public relations position that was false, and that senior leadership was involved in maintaining it.

That distinction matters. A company that makes a compliance error can fix the process. A company whose leadership deliberately shapes public messaging around false claims about user data is doing something structurally different.

What this means if you use Facebook, Instagram or WhatsApp

The direct consequence for users is not a check in the mail. Class action settlements sometimes return small amounts to affected individuals, but this fine goes to New Mexico's state government, not to the people whose data was misused.

The real consequence is institutional. For years, the default assumption in Washington and in boardrooms was that self-regulation and occasional settlements were enough to keep the big platforms accountable. What's accumulating now is a different picture: state attorneys general, armed with their own consumer protection statutes, pursuing judgments large enough to register on a quarterly earnings call.

Whether a $25 billion fine changes Meta's behavior depends on whether courts can enforce it and whether Meta appeals, as it almost certainly will. But the ruling establishes something harder to undo than a dollar figure. A federal judge has now written, in a binding legal order, that the company's executives spent eleven years constructing a lie about one of the most fundamental questions users ask of any platform: who sees my information, and what do they do with it?

That question, it turns out, was never answered honestly. The price of that, at least in New Mexico, is now on the record.

Treat yourself to information rid of fiction and slogans.

Treat yourself to information rid of fiction and slogans.

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