Meta says it would’ve made over $22 billion if it didn’t have to pay a child safety settlement
Meta reported a significant impact on its Q3 earnings due to a $9.89 billion payment related to a child safety settlement. Despite this, the company saw a 26 percent revenue increase and continues to invest heavily in AI development.
Why it matters
The report highlights the tension between Meta's strong financial growth and the mounting legal and regulatory costs associated with its social media platforms' impact on minors.
Meta had to shell out $9.89 billion to pay for a chunk of the child safety settlement it reached with US attorneys general. That’s according to the company’s third-quarter earnings report released on Wednesday, which says Meta’s income from operations would have been $22.89 billion without the settlement.
In August, Meta agreed to pay $17.1 billion to settle a massive nationwide lawsuit that claimed the company harmed children by making its social media platforms “addictive” by design. It will also only pay $5.3 billion of this amount if YouTube and TikTok implement stricter settings and safeguards for kids, which Meta also agreed to as part of the settlement.
Headlinne story · 8 newsrooms
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