Meta disclosed in its earnings report that it spent $9.89 billion on a child safety settlement with U.S. attorneys general. The company estimates its operating income would have been $22.89 billion without this expense. The settlement, part of a broader $17.1 billion agreement from August, aims to address claims that Meta's platforms were designed to be addictive for children. Meta will pay $5.3 billion of the settlement if YouTube and TikTok adopt similar child safety measures.
October 21, 2026
Meta's Earnings Hit $64.6B Amid Legal Costs
Meta's third-quarter revenue rose 26% to $64.6 billion, but legal settlements cost the company $9.89 billion.
Impact
The legal costs highlight ongoing challenges for Meta as it navigates regulatory scrutiny and litigation, potentially affecting its financial performance in the coming quarters.