\n
\u201cAt its core, this lawsuit seeks to impose a tax on speech to enforce new rules for what people can say online. We are confident we will prevail on appeal,\u201d Mahoney said in a statement.<\/p>\n
During the trial, Meta’s lawyers argued that New Mexico had failed to demonstrate that the company’s statements were misleading or that users had suffered the harm alleged by the state.<\/p>\n
The company’s legal team also challenged the size of the potential financial penalty, arguing that an award substantially exceeding its proposed maximum of $3.4 billion would be unconstitutional.<\/p>\n
Meta further maintained that it had introduced changes to its policies since the lawsuit was filed in 2021 and estimated that it identifies and removes approximately 99 per cent of content that violates its standards.<\/p>\n
The company has also argued that decisions about content moderation involve balancing the protection of users against freedom of expression.<\/p>\n
New Mexico pursued the case independently after declining to join a multistate settlement involving Meta.<\/p>\n
In August, the company reached an $18 billion settlement with nearly all US states and territories, excluding New Mexico and Florida, in a separate legal dispute concerning the impact of Facebook and Instagram on children and teenagers.<\/p>\n
That settlement included stronger child-safety measures and resolved litigation alleging that the platforms’ design features contributed to social media addiction and harmed young people’s mental health.<\/p>\n
New Mexico instead continued with its own legal action, focusing on allegations involving consumer protection and the handling of personal information.<\/p>\n
The two cases address different legal issues, although both reflect growing scrutiny of Meta’s business practices and the responsibilities of social media companies.<\/p>\n
Nidhi Hegde, executive director of the American Economic Liberties Project, described the $25 billion award as relatively small compared with Meta’s financial resources, while arguing that the judgment demonstrated public demand for corporate accountability.<\/p>\n
Hegde also raised concerns about the company’s expanding artificial intelligence services and the sensitive personal information users might share with AI assistants.<\/p>\n
Meta, headquartered in Menlo Park, California, has a reported market value of approximately $1.8 trillion and generated more than $200 billion in revenue in the previous year.<\/p>\n
The company’s shares traded around 2 per cent higher following Wednesday’s announcement, while its quarterly earnings report was scheduled for later that day.<\/p>\n
The judgment exceeds the $5 billion fine imposed on Facebook by the US Federal Trade Commission in 2019 over privacy-related violations.<\/p>\n
Peter Ormerod, an associate law professor at Villanova University, expressed surprise at the size of the New Mexico award, noting that previous settlements linked to the Cambridge Analytica scandal had been considerably smaller.<\/p>\n
The size of the penalty could intensify debate over how regulators and courts should hold major technology companies accountable for violations of consumer protection laws.<\/p>\n
For technology firms operating across the United States, the case also highlights the potential financial consequences of misleading consumers about privacy and data management.<\/p>\n
Despite the ruling, the legal dispute is far from over. Meta’s planned appeal could lead to further court proceedings, including a possible reduction in the number of violations and the total amount payable.<\/p>\n
The case represents a major development in the ongoing debate over digital privacy, corporate responsibility and the protection of personal information in an increasingly data-driven economy.<\/p>\n
While New Mexico officials say the judgment establishes accountability for misleading consumers, Meta maintains that the ruling is legally flawed and intends to challenge it.<\/p>\n
The outcome of the appeal will determine whether the $25 billion award stands and could influence how similar consumer protection cases against major technology companies are pursued in the future.<\/p>","protected":false},"excerpt":{"rendered":"
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