Meta ordered to pay US$25 billion to New Mexico after a jury found it misled users about privacy
Judge Francis Mathew of a New Mexico state court ordered Meta Platforms on Wednesday 21 October to pay the state US$25 billion, Reuters, CNN and PBS NewsHour reported. A jury had found in September that 26 of 29 statements put to it were misleading and that Meta committed more than 43 million violations of the state's consumer protection laws. The judge found a penalty of more than US$219 billion was warranted at up to US$5,000 a violation but reduced it to US$25 billion. New Mexico had asked for US$35 billion to US$40 billion and Meta for no more than US$3.45 billion. The money is for New Mexico's school system, with interest of 15 per cent a year until paid. Meta says it will appeal. The Sydney Morning Herald's markets wrap on 22 October put the figure at about $36 billion in Australian dollars.
State consumer-protection laws set a penalty per violation, so a very large count of violations multiplies quickly into a very large number, and the judge's reduction shows courts can trim but still impose large totals. An appeal can take years, and the 15 per cent interest rate raises the cost of waiting.
Australians do not receive money from this order, which goes to New Mexico schools. It is a signal for local users and regulators about how far courts will go on privacy claims, and Meta's Australian shareholders and advertisers will watch the appeal.
New Mexico's government, as reported by Reuters and CNN, argued that Meta deceived users for years about privacy and safety and that a penalty large enough to deter was needed. The judge accepted the jury's findings on misleading statements.
Meta, quoted by CNN and PBS, says the penalty is excessive, plans to appeal and argued for a maximum of US$3.45 billion. Its chief legal officer said the company is confident it will prevail on appeal.
Confirmed: the US$25 billion order, the jury's findings and Meta's plan to appeal. Not confirmed: whether the amount survives appeal, or how interest and any stay will work. Watch for a stay request and any ruling from the higher court.
DailyDrop Australia edition No. 19 · Morning · FRI., OCT. 23, 2026