This would have been blatant contempt of court. What they did was slightly less blatant.
Facebook and Washington "entered into a stipulated judgment that covered Meta’s violations through November 30, 2018" in 2018 [1]. (It required Facebook "no longer 'accept ads that relate to Washington’s state or local elected officials, candidates, elections or ballot initiatives.'")
Not complying at all with requests from the AG, i.e. arguing they had no knowledge about the situation (versus that they misunderstood the rules), could thus be interpreted as willful violation of the judgement.
[1] https://agportal-s3bucket.s3.amazonaws.com/174_StatesMSJ.PDF page 3
what
I can only assume Meta feels the risk/costs of fines are less than the bennefit of not disclosing who pays them big dollars for targeting certain demographics. I.e not provide ammunition for law makers to come after them in more costly area.
What would happen if meta defied a subpoena? IDK TBH. Perhaps a total shutdown until they comply? IDK if a company has ever defied a congressional subpoena.
This case was about civil liability so the rules are all a little different. Not giving data during discovery generally means adverse inferences are made by the court (IE, this data is so bad that we have no choice but to believe what the plaintiff is saying about it).
Defying subpoenas, though, generally results in contempt and fines. For an individual, that'd mean jail time.
If it can’t be automated, Facebook isn’t interested in complying.
Requiring a human to review each ad increases the fixed cost of serving a campaign.
It seems your conclusion is, "Therefore they should be above the law."
No, that isn't how it works. They *must* comply with the law, and if they cannot be profitable when they are not a criminal entity, then they should go out of business.
If they had simply not complied at all and tried to blame their customers for not classifying the ads correctly, it might have gone a bit better in their favor.
Related, it's still insane that companies can basically argue "this ad that thousands upon thousands will see cannot be reviewed by hand even once because that would be too hard".