Meta disclosed it would have earned $22.89 billion in its third quarter if it hadn’t forked out $9.89 billion for a child safety settlement. The hefty bill comes as part of an agreement with US attorneys general, aimed at addressing claims that the company's social media platforms are inherently addictive and harmful to kids.
In August, the social media giant agreed to cough up $17.1 billion, a sum that could be reduced to $5.3 billion if YouTube and TikTok beef up their child protection features. The company's total costs and expenses, including these legal fees, amounted to $51.61 billion. Despite the hefty spend, Meta reported a 26 percent increase in revenue, landing at $64.60 billion for the quarter.
“We hit major milestones this quarter toward delivering personal superintelligence for everyone,” boasted Meta CEO Mark Zuckerberg. “Our investments are paying off, the core business is strong, and we’re seeing velocity across the board.”
But with looming litigation costs, including a potential $25 billion fine over the Cambridge Analytica scandal, the tech giant faces a bumpy road ahead. Is the price of safety too high, or is this a necessary expense to keep children safe online?
