An $18bn settlement is a drop in the ocean for Meta – but the tide will still come for it

The recent $18 billion settlement between Meta and 52 US attorneys general may have been a pragmatic decision for the tech giant, but it doesn’t change the fundamental reality: Meta is still facing a tidal wave of lawsuits and regulatory scrutiny around the world.

Meta’s defenders might argue that paying out billions of dollars without admitting liability is a savvy move. However, this argument glosses over the fact that Meta is still on the hook for potentially billions more in fines and settlements. The company made over $60 billion in profit last year alone, making the settlement amount a mere drop in the ocean.

The real sting of this settlement lies not in its financial implications but rather in its structural consequences. By agreeing to unwind some of its most profitable features – those designed to keep users engaged for hours on end – Meta is acknowledging a fundamental flaw in its business model. These mechanisms have been integral to Meta’s success over the past two decades, driving engagement and ad revenue.

As a result, Meta must now confront the long-term viability of its business model. Without these features, how will the company maintain user growth and ad revenue? The answer remains unclear, but one thing is certain: Meta’s troubles are far from over. The company still faces multiple class-action lawsuits and regulatory inquiries around the world.

The settlement also highlights the limitations of regulatory action. While fines and settlements can provide some measure of accountability, they often fail to address the underlying issues driving these problems in the first place. In this case, the agreement to unwind certain features is a step in the right direction, but it’s unclear whether regulators will be able to keep pace with the evolving landscape of tech industry malfeasance.

Looking ahead, one thing is clear: Meta’s troubles are far from over. As more evidence comes to light about its business practices, it’s likely that we’ll see further erosion of Meta’s reputation and bottom line. The company would do well to recognize that the tide is turning against it – and that the most significant challenge ahead lies not in navigating regulatory waters but rather in confronting its own internal flaws.

Meta’s executives must consider the ultimate cost of their decisions. Will they choose to continue down a path that prioritizes profit over people, or will they take steps to fundamentally reform their business model? The world is watching – and waiting to see how Meta responds to this latest challenge.