Meta Claims Child Safety Settlement Cost Them Over $22 Billion in Potential Earnings

Meta has forked over $9.89 billion as part of a settlement related to child safety, as revealed in its third-quarter earnings report released on Wednesday. Without this settlement, the company’s operational income would have stood at $22.89 billion.

Back in August, Meta agreed to a hefty $17.1 billion to resolve a significant nationwide lawsuit that accused it of creating “addictive” social media platforms that negatively impacted children. Interestingly, the company will only pay $5.3 billion of this total if competitors like YouTube and TikTok enhance their child safety measures, which Meta has also committed to as part of the agreement.

Overall, Meta’s costs and expenses reached $51.61 billion, factoring in the settlement amount. The company might face even larger legal expenses ahead, as a New Mexico court recently ordered it to pay $25 billion related to the Cambridge Analytica scandal.

Despite these legal challenges, Meta reported a revenue of $64.60 billion, reflecting a 26 percent increase compared to the same period last year. “We hit major milestones this quarter toward delivering personal superintelligence for everyone,” said Meta CEO Zuckerberg in the press release. “Our investments are paying off, the core business is strong, and we’re seeing velocity across the board.”

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