Meta ordered to pay $25 billion to New Mexico due to Cambridge Analytica scandal-related case
TechCrunch
1h ago
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According to The New York Times, a U.S. judge ruled on Wednesday that Meta must pay $25 billion to the state of New Mexico for misleading users in its data privacy practices. After two weeks of deliberation in this case related to the Cambridge Analytica data scandal, a jury found that Meta violated the state's consumer protection law 43 million times. Meta stated that it will appeal the ruling.
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The fallout from the Cambridge Analytica data scandal ( Cambridge Analytica ) continues, and it is still costing Meta a huge price.

According to The New York Times, on Wednesday, a judge ordered this social media giant to make the largest compensation payment to date: $25 billion to New Mexico, due to the tech giant's misleading practices regarding data privacy that deceived users in the state.

This substantial compensation follows a two-week trial during which a jury in New Mexico deliberated over the company's alleged misconduct. Reports indicate that the jury found that the parent companies of Facebook and Instagram violated the state's consumer protection law 43 million times, with a fine of $5,000 for each violation.

According to The Wall Street Journal, part of the case revolves around how the company handled a third-party app related to the Cambridge Analytica data breach incident. Other aspects of the case involve its data privacy policy and its efforts to curb the spread of false information on the platform.

Cambridge Analytica originated from the British defense contractor SLC Group. This group specializes in influence operations and other political activities. The company collaborated with Trump's campaign during the 2016 presidential election and has also been involved in several controversial projects.

"We may have already made the decisions for school construction over the next 100 years," New Mexico Attorney General Ra úl Torrez told reporters during a press conference discussing the case outcome.

Meta indicates that an appeal will be filed against this ruling.

"This ruling, as well as the way the Attorney General pursued this enforcement, has made it almost impossible for businesses to operate in New Mexico," said C.J, Chief Legal Officer of Meta. In a statement sent via email to TechCrunch, he stated, "Fundamentally, this lawsuit attempts to impose new rules on what people can say online by taxing speech. We are confident that we will win on appeal. Meanwhile, Meta will continue to build a safe and free platform that connects millions of Americans, supports the growth of small businesses, and helps the United States maintain its competitive edge." he added.

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