Meta Posts Record Revenue as New Mexico Orders $25 Billion Fine

Meta paired a record-breaking quarter with a legal blow: revenue rose 26% to $64.6 billion, while a New Mexico judge ordered a $25 billion penalty over Facebook’s privacy claims. The fine is the largest Meta has faced. The company says it will appeal, leaving the final bill uncertain even as its business keeps growing. ^1,3

Those 3.64 billion daily users across Meta’s apps help explain the company’s strength: ads brought in $63.1 billion of its quarterly revenue, with more ads shown and higher average prices. The court case grew from the Cambridge Analytica scandal, when a political consulting firm got Facebook data from as many as 87 million users and used it to target voters. New Mexico sued in 2021, arguing the company misled people about data access and harmful content. ^1,3

The 43.9 million violations came from jurors’ count of how many New Mexico residents may have seen misleading statements. They found 26 of 29 statements by Meta and its leaders misleading. State law allows up to $5,000 per violation, which would have produced a roughly $219.5 billion maximum; Judge Francis Mathew cut the award to $25 billion. The state says the money will support education, while Meta argues the penalty is far too high and says the case threatens its ability to operate in New Mexico. ^3,7,11

Meta’s next step is an appeal, which could delay payment or reduce the amount. The written order also sets interest at 15% a year until the penalty is paid, about $3.75 billion annually on $25 billion, according to CNBC. The ruling’s wider test is whether states can use consumer laws to hold platforms to their public promises about privacy and content moderation. ^3,12,17