Meta Q3 operating income would have hit $22.89 billion absent settlement

Meta Platforms reported that its third-quarter income from operations would have reached $22.89 billion if it had not been required to pay a portion of a child safety settlement. The company disclosed this figure in its earnings report released on Wednesday, attributing the reduction in operational income to a $9.89 billion payment obligation.

In August, Meta agreed to pay a total of $17.1 billion to resolve a nationwide lawsuit brought by US attorneys general. The legal action alleged that Meta harmed children by designing its social media platforms to be addictive. The company’s earnings report specifies that the $9.89 billion charge represents the portion of the settlement affecting the current period's operating results.

The settlement terms include a conditional component regarding other technology platforms. Meta is required to pay only $5.3 billion of the total settlement amount if YouTube and TikTok implement stricter settings and safeguards for minors. Meta also agreed to implement similar protections on its own platforms as part of the agreement.