---
title: "Meta Fined $25 Billion Over Data Privacy Practices"
url: https://newscentral.site/meta-fined-25-billion-over-data-privacy-practices/
language: en
publisher: "News Central Site"
section: "Technology"
published: 2026-10-22T23:15:36.000Z
updated: 2026-10-23T05:25:15.073Z
id: 6302a546-a273-4c6b-ade8-f7d5a88d5c26
source: "CNET https://www.cnet.com/news/privacy/meta-25-billion-court-loss/"
attribution: "Link to https://newscentral.site/meta-fined-25-billion-over-data-privacy-practices/ and name News Central Site when you quote or summarize this story."
---

# Meta Fined $25 Billion Over Data Privacy Practices

A US court has handed down a massive penalty to Meta for allegedly misleading users about its data privacy practices.

A US court has handed down a massive $25 billion penalty to Meta, the parent company of Facebook and Instagram, for allegedly misleading users about its data privacy practices.

The ruling was issued in New Mexico, where a jury trial found that Meta had violated state law by deceiving social media consumers on their data protection. The case dates back to the Cambridge Analytica scandal involving the 2016 presidential election, which highlighted concerns over online data misuse.

Under New Mexico's Unfair Practices Act, Meta has been ordered to pay penalties for nearly 44 million violations of the law. This marks a significant blow to the tech giant, with Meta having previously attempted to cap its penalties at $3.45 billion in court filings.

If Meta chooses to appeal the verdict, it could potentially avoid paying the full amount of $25 billion. However, some estimates had suggested that the company could have faced even steeper penalties, reaching as high as $219 billion.

Meta has yet to comment on the ruling, but New Mexico Attorney General Raúl Torrez has hailed the decision as a significant victory in holding powerful corporations accountable for their actions.

The series of hefty fines and settlements slapped on Meta in recent years appears to have had little impact on its behavior. The company has been repeatedly criticized for allowing access to user data without consent, as seen in the Cambridge Analytica scandal that contributed to Donald Trump's 2016 presidential campaign.

Meta's social media platforms have also come under fire for their addictive nature, particularly when it comes to children and teenagers. In a separate case, the company was ordered to pay up to $18 billion to multiple US states after admitting that its platforms were intentionally designed to be harmful to young users.

These significant payouts seem to have done little to curb Meta's penchant for pushing boundaries in terms of user data collection and platform design. The company has continued to develop new features, such as the Muse agentic AI platform, which raises concerns about privacy and security.

Just this week, researchers discovered a flaw in the links generated by Muse conversations that allowed unauthorized access. In response, Meta suspended the feature, but this incident highlights the ongoing issues with user data protection at the company.

Meta's smart glasses are still a contentious issue, with ongoing concerns about their potential use of facial recognition technology. Despite reports suggesting that Meta is exploring alternatives to camera-equipped models, these versions would be in addition to those that already include cameras.

The implications of the New Mexico court case on Meta's business ventures are likely limited, despite the possibility of a significant penalty being imposed. The company's newer technologies, such as AI and AI-assisted hardware, may not be directly affected by the ruling.

According to Michael Stokes, senior vice president of emerging technologies at Veilant, it is only through court orders that companies can be forced to make changes to their products. Stokes emphasized that settlements, like the one in New Mexico, do not necessarily dictate how a company must operate.

Stokes also noted that any settlement written for 2018 would not apply to Meta's newer devices, which may include AI and AI-assisted hardware.

Meta's hefty court loss may have significant implications for its business model, but it's unlikely to prompt a drastic change of course. The $25 billion judgment is largely symbolic, and the company will likely continue to face numerous lawsuits over issues such as data collection and platform design.

The payout from this latest verdict will not be distributed to Meta users; instead, it will go towards New Mexico's public school fund. This may seem like a substantial sum for education, but experts argue that it won't have a significant impact on the company's overall business.

Despite the financial hit, Meta's stock actually rose following the judgment, indicating that investors don't see fines as a major concern for the tech giant. However, this verdict and others like it may still pose a threat to Meta's reputation and future litigation risks.

The court's decision highlights the ongoing scrutiny of tech companies' handling of user data and promises made regarding platform safety and security. As a result, any company making such claims should expect to be held accountable for its actions.

---
Source: [CNET](https://www.cnet.com/news/privacy/meta-25-billion-court-loss/)  
Published by News Central Site: https://newscentral.site/meta-fined-25-billion-over-data-privacy-practices/
