$40 billion penalty demand for Meta

The amount of fine requested for the technology giant Meta in the USA hit the agenda like a bombshell. The state of New Mexico demanded that the company pay a fine of between 35 and 40 billion dollars after the jury verdict that Facebook users were misled about the privacy of their personal data, and the judge who heard the case will have the final say.

'IT HAS BEEN VIOLATED MORE THAN 43 MILLION TIMES'

According to The News, the jury in the Santa Fe trial concluded on September 25 that Meta misled consumers about Facebook's data privacy practices. While 26 of the 29 statements evaluated by the jury were found to be misleading, it was determined that New Mexico's consumer protection laws were violated more than 43 million times due to these statements. The New Mexico Department of Justice announced the number of violations as 43 million 899 thousand 725.

DATA LEAKING SCANDAL IS AT THE CENTER OF THE FILE

The basis of the case is the Cambridge Analytica scandal that emerged in 2018. Allegations that the British political consultancy company accessed the data of approximately 87 million Facebook users without their consent through a third-party application and that this data was used for targeted advertisements became the center of the case in New Mexico years later.

The lawsuit filed by New Mexico in 2021 did not focus only on the Cambridge Analytica incident. The state argued that Meta made misleading statements to its users about who has access to their personal data and how the company manages this data, and also made false statements about its policies to combat hate speech and disinformation on the platform.

The jury also found Meta's statements misleading in the wake of the Cambridge Analytica scandal that it would investigate third-party apps that accessed large amounts of user data, conduct forensic investigations, remove developers who misused data from the platform, and notify users whose information may have been affected.

'An ASTRONOMICAL PUNISHMENT'

The issue of the penalty amount brought the parties face to face in court. Meta attorney Matt Nicholson called New Mexico's request an "excessive and astronomical penalty" and argued that it would be incompatible with constitutional protections. The company requested that the fine be limited to $3.45 billion.

Meta also argued that New Mexico failed to present sufficient evidence in the case that any consumers were actually misled. The company also argued that it did not sell user data and stated that the penalty requested by the state was not proportionate to the behaviors discussed in the case.

LEGAL LIMIT CAN EXCEED 219 BILLION DOLLARS

According to New Mexico law, the judge can impose a fine of up to $5,000 for each violation. Calculated on the more than 43 million violations the jury found, the theoretical cap could reach over $200 billion; However, the state demands a figure of 35-40 billion dollars to avoid problems in terms of constitutional "fair trial" and proportionality principles. According to Reuters, this amount corresponds to approximately 20 percent of the maximum total penalty that can be prescribed by law.

'IT WILL BE ANNOUNCED IN THE FUTURE DAYS'

The judge of the case, Francis Mathew, pointed out that at the hearing, the parties should also accept the consequences of the decision to go to court. The judge stated that he expects to announce his decision on the amount of the penalty later in October.

Thus, the case, which started in 2021 and progressed in the shadow of the Cambridge Analytica scandal, entered a new phase with the possibility of a billion-dollar penalty for Meta. The judge's decision will determine the extent of financial sanctions the company will face.