A New Mexico judge has ordered Meta to pay $25 billion for misleading users about its privacy practices in a case linked to the Cambridge Analytica scandal. A jury found in September that the company violated the state’s Unfair Practices Act more than 43 million times. The case stems from the 2018 disclosure that Cambridge Analytica improperly obtained data from as many as 87 million Facebook users to build voter profiles. Meta plans to appeal, arguing that the lawsuit unfairly targets online speech.
The ruling adds to Meta’s growing legal challenges. The company recently agreed to an $18 billion settlement with multiple states over claims that its platforms harmed young people. It also faced a separate penalty of nearly $1 billion in New Mexico over similar allegations. Despite these costs, Meta’s business remains strong, with quarterly sales rising 26% year-on-year to more than $64 billion.
Much of Meta’s growth is attributed to AI investments that Meta says are improving consumer interaction with its products and advertising effectiveness․ Meta has made significant AI-related capital expenditures‚ totaling about $35 billion quarterly․ Favorable reactions to new product offerings from investors and others have helped Meta’s growth․ Other risks to Meta include legal proceedings and other technology expenses․
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