A New Mexico judge has ordered Meta to pay $US25 billion ($AU35.6 billion) for misleading Facebook users about their data privacy.
The penalty is the largest in Meta’s history, but the company has said it will appeal the ruling.
The ruling came just hours before Meta reported $US64.6 billion in revenue for the three months to September.
The company has a market valuation of $US1.78 trillion.
Here’s what you need to know.
Background
The U.S. state of New Mexico sued Meta in 2021, alleging the company had violated a law prohibiting businesses from misleading consumers.
The lawsuit followed revelations in 2018 that the personal data of up to 87 million Facebook users had been improperly shared with political consulting firm Cambridge Analytica.
The state argued Meta had misled users about how much control they had over their personal data and the company’s efforts to tackle hate speech and misinformation.
Decision
In September, a jury found Meta had violated the law nearly 44 million times.
Each violation carries a potential penalty of up to $US5,000, meaning the maximum penalty could have reached $US219.5 billion.
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According to Reuters, New Mexico sought a penalty of between $US35 billion and $US40 billion, while Meta argued it should pay no more than $US3.45 billion.
The judge has now ordered Meta to pay $US25 billion, plus 15% annual interest until the amount is paid.
Past payouts
In August, Meta agreed to pay up to $US17 billion to settle claims from 47 U.S. states that its platforms harm teenagers, which the company denied.
The deal also included $US459 million to settle Cambridge Analytica-related claims.
In Australia, Meta agreed to pay $AU50 million in 2024 over claims involving users affected by the Cambridge Analytica scandal.
In a separate New Mexico child-safety case, Meta was ordered to pay $US942 million across two rulings in March and August.
What’s next
Meta has said it will appeal.
If the penalty stands, the money will go to New Mexico’s education fund, according to the state’s Attorney General.
The judge has yet to decide whether to order changes to how Meta operates in the state.
Meta also faces thousands of other lawsuits in the U.S, with the next trial over social media’s alleged harm to young people expected to begin on 28 October.
