The New Mexico Department of Justice has imposed on Meta a record-breaking $25 billion fine (around €22.3 billion) for systematically misleading Facebook users about how their personal data was handled and how the platform operated. This is one of the largest financial penalties ever imposed on a company in U.S. history.
The ruling, signed by New Mexico Judge Francis J. Mathew, was published on October 21, 2026, after a jury concluded that Facebook had committed 43,899,725 violations of the state’s consumer protection law.
To understand this ruling, we have to go back to 2018, when the Cambridge Analytica scandal erupted. This British political consulting firm had obtained personal information from as many as 87 million Facebook users through a third-party app without their consent. That data was then used to build voter profiles and target political campaigns, including the 2016 U.S. elections.
In the wake of the scandal, New Mexico filed a lawsuit against Meta in 2021, accusing the company of misleading consumers about the privacy of their data. However, the judicial investigation ultimately uncovered practices that went beyond Cambridge Analytica.
According to the ruling, Facebook allowed external developers to access users’ personal information and even that of their friends, without those users being aware of it. In addition, although the company announced restrictions on these practices in 2014, it maintained exceptions that it did not publicly disclose.
The court found it proven that Facebook developed a ongoing strategy of deceptive statements, both regarding data protection and content moderation. Among the irregularities identified were broken promises about privacy. The company told users they controlled their data, even though its own tools did not allow them to exercise that control effectively.
The jury found that 26 of the 29 public statements reviewed were unlawful and deliberate. These communications, distributed through different channels—television and press interviews, conferences, investor calls, and statements by its top executives—span more than eleven years, from May 2010 to August 2021. Internally, the company’s leadership knew about the platform’s deficiencies and limitations, yet continued to promise safeguards that it knew it could not or would not fulfill.
Facebook’s response to the Cambridge Analytica scandal is also under scrutiny. The social network promised to investigate suspicious apps, delete improperly obtained data, and notify affected users, but the investigations were insufficient and the notifications were limited to only a small share of the cases identified.
The irregularities also extended to the moderation of false content and hate speech. The ruling states that Facebook was aware of the limitations of its systems and even applied different treatment to certain celebrity and high-profile user accounts.
New Mexico law allows for penalties of up to $5,000 per violation. Applying that maximum, the penalty initially totaled $219.4986 billion, although the judge decided to reduce it to $25 billion. In addition, the ruling sets a 15% annual interest rate until payment is completed and leaves open the possible imposition of additional corrective measures.
Raúl Torrez, New Mexico Attorney General, said in the Department of Justice’s statement: “Today is a historic day for New Mexico and for consumers across the country. For too long, powerful tech companies have operated as though their size and influence placed them above the law. A New Mexico jury determined that nearly 44 million violations of our consumer protection law had been committed, and this penalty order shows that those violations carry real consequences. We took on one of the largest companies in the world because the people of New Mexico deserve honesty, accountability, and protection for their personal information. Today’s outcome makes it clear that no corporation is too powerful to be held accountable.”
Likewise, this ruling comes just two months after Meta reached a multibillion-dollar agreement with U.S. prosecutors to resolve lawsuits related to the addictive design of Instagram and Facebook and its effects on minors.
The settlement, which also included claims linked to Cambridge Analytica, involved 48 U.S. states and several territories. However, New Mexico and Florida chose to remain outside the agreement. New Mexico, for its part, opted to maintain its claims and continue the proceedings, which have now resulted in this historic penalty.
The announcement of the ruling coincided with the release of Meta’s third-quarter 2026 results, which showed 26% revenue growth to $64.601 billion, but also a 37% drop in operating profit. That decline is largely due to an extraordinary $9.89 billion charge related to the August legal settlement, not the new New Mexico penalty.
For now, Meta plans to appeal the ruling, so the final amount ultimately enforceable could change. The company is challenging both the basis of the proceedings and the proportionality of the fine. It is yet another legal front for a company that, despite maintaining economic growth, continues to rack up major courtroom battles.
Photo: generated with ChatGPT Images 2.5
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