Meta, the company behind Facebook, Instagram and WhatsApp, has been ordered to pay $25 billion (about Shs93 trillion) to the US state of New Mexico after a court found that it misled users about the handling of their personal data.
The judgment, delivered on Wednesday, October 21, 2026, ranks among the largest financial penalties imposed on a company in US history and is one of the biggest legal blows to the technology giant over its business practices.
Judge Francis Mathew issued the order after a jury found that Meta had committed more than 43 million violations of New Mexico’s consumer protection laws through misleading statements about data privacy and content moderation on Facebook.
The case stemmed from allegations linked to the Cambridge Analytica scandal, in which the now-defunct British political consulting firm obtained personal information from as many as 87 million Facebook users through a third-party application without their consent.
New Mexico’s Attorney General, Raúl Torrez, sued Meta in 2021, accusing the company of misleading users about who could access their personal information and how it handled harmful content, including hate speech and misinformation.
Jurors found that 26 of 29 statements made by the company and its leadership were misleading. They determined that the statements amounted to more than 43 million violations of the state’s consumer protection laws.
Under New Mexico law, each violation can attract a penalty of up to $5,000. Although the court initially calculated that the violations could justify a penalty exceeding $219 billion, Judge Mathew reduced the award to $25 billion.
Torrez described the ruling as a major step towards holding large technology companies accountable for their treatment of consumers.
“It has been a long time coming holding Big Tech accountable,” he said, adding that the judgment sent a warning to companies operating in the technology sector.
Meta, however, has said it intends to appeal the ruling, arguing that the case threatens its ability to operate fairly in the state.
C.J. Mahoney, Meta’s chief legal officer, said the company was confident it would prevail on appeal.
“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,” Mahoney said.
He argued that the case sought to impose restrictions on online speech under the guise of consumer protection.
The penalty is linked to a long-running dispute over Facebook’s data privacy practices following revelations that Cambridge Analytica harvested information from millions of users and used it for voter profiling and targeted political advertising, including in connection with the 2016 US presidential election.
The case has renewed scrutiny of how social media companies collect, protect and use personal information, particularly when their platforms reach millions of users.
Meta has previously faced major financial penalties over privacy issues. In 2019, the company agreed to pay a $5 billion fine to the US Federal Trade Commission over the Cambridge Analytica scandal.
The latest judgment comes as Meta faces additional legal challenges over child safety, the effects of social media on young people’s mental health and the responsibilities of technology companies in moderating content.
Although the $25 billion award is substantial, its final value could change if Meta successfully challenges the judgment in court. The company has indicated that it will contest the decision.
The ruling also raises questions about the responsibility of technology companies whose business models depend on collecting user information and distributing content to vast audiences.
For New Mexico, the case represents an effort to enforce consumer protection laws against one of the world’s largest technology companies. For Meta, the impending appeal will determine whether the record-setting penalty survives legal scrutiny.
