Meta says it would’ve made over $22 billion if it didn’t have to pay a child safety settlement
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 […]
Meta's third-quarter earnings report revealed that the company spent $9.89 billion to settle a child safety lawsuit with US attorney generals. This amount accounts for a significant portion of the $22.89 billion in income from operations that Meta would have earned without the settlement, as stated in the report released on Wednesday.
In August, Meta agreed to a $17.1 billion settlement to address claims that its platforms were designed to be addictive for children. However, the company will only pay $5.3 billion if YouTube and TikTok implement stricter settings and safeguards for kids, as per the settlement agreement. Overall, Meta's total costs and expenses reached $51.61 billion, including the settlement fees.
The company faces potential further litigation costs, such as the $25 billion judgment ordered in a New Mexico court for the Cambridge Analytica scandal. Despite the legal expenses, Meta reported $64.60 billion in revenue, a 26 percent increase from the same period last year. Meta CEO Mark Zuckerberg highlighted in the press release that the company achieved significant milestones in delivering personal superintelligence and noted strong core business performance with growth across its operations.
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