Meta, the company operating Facebook and Instagram, has faced a significant setback in the United States. A court in New Mexico ordered the company to pay a civil penalty of $25 billion, equivalent to approximately ₹2.36 lakh crore, in matters related to user data and privacy. This case concerns what information the company provided to users regarding the use of their private data, sharing it with others, and harmful content on the platform.
The roots of this case extend back to the Cambridge Analytica scandal during the 2016 US presidential election. At that time, the issue of millions of Facebook users' private information being used for political advertising was a global discussion. The decision by the New Mexico court has once again raised the question of how accountable large technology companies are to their users' data. However, it is important to note that this amount is not the final amount recovered from Meta, as the company has already stated its intention to appeal the decision, which may lead to further legal battles.
Why was Meta fined ₹2.36 lakh crore?
The state of New Mexico filed a lawsuit against Meta in 2021. The state alleged that Facebook provided misleading information to people regarding the security and use of their data. The allegations also included that the company led users to believe they had control over how their private data was shared, while a large amount of information could be accessed through third-party apps.
During the hearing, the company's statements and policies were questioned. It was also investigated what Facebook told the public about its efforts to prevent misinformation and hate speech on its platform. In September 2026, the jury ruled that 26 out of the company's 29 statements were misleading. The jury held the company liable for approximately 43.9 million violations under New Mexico's consumer protection law. Consequently, the court set a civil penalty of $25 billion on October 21, 2026, which is approximately ₹2.36 lakh crore in Indian rupees.
How is the case connected to the Cambridge Analytica scandal?
To understand this entire dispute, one must go back nearly a decade. The Cambridge Analytica case involving Facebook in 2018 caused a stir globally. The allegation was that data from approximately 87 million Facebook profiles was obtained through a third-party application and used to target political advertisements. Cambridge Analytica was a political consulting firm, and this controversy raised questions about how secure information shared on Facebook is and whether users know which individuals or companies can access their data.
This lawsuit in New Mexico is related to this dispute, but its proceedings were not limited only to old data cases. It also questioned the company's privacy statements, the access of third-party apps, and claims made regarding harmful content. The state claimed that the company assured people that their data was safe and that necessary steps were being taken to prevent misuse, but the jury found several statements misleading, leading to the company being held responsible for law violations.
A major reason for such a large fine is the number of violations. According to New Mexico law, a civil penalty of up to $5,000 can be imposed for each intentional violation. The jury counted approximately 43.9 million violations. The state argued that the violations should be calculated based on the number of potential people who could see or hear the company's misleading statements. The state demanded a heavy fine from the court on this basis.
The state's lawyers initially sought a fine ranging from $35 billion to $40 billion, while Meta argued that such a large amount would be unreasonable and violate its rights under the law, arguing for a lower fine. The judge initially considered an amount exceeding $219 billion, but ultimately reduced it to $25 billion. $219 billion in Indian currency is approximately ₹20.7 lakh crore, whereas the $25 billion set by the court is approximately ₹2.36 lakh crore, showing a significant difference between the two amounts.