Meta is fighting back against legal penalties in an effort to lessen the impact of future liabilities. The social media giant has challenged Britain’s media regulator over the scope of penalties, and has also asked a Los Angeles court to throw out a verdict regarding the company’s liability for causing a woman’s depression.
The two legal fronts highlight Meta’s aggressive stance against mounting regulatory and legal pressures worldwide.
The UK Challenge: Ofcom Penalties
| Aspect | Details |
|---|---|
| Regulator | UK Office of Communications (Ofcom) |
| Issue | Penalties based on Meta’s worldwide revenue, not just regulated services |
| Meta’s Argument | “Disproportionate and unlawful”; unfairly penalizes based on size and scope |
| Hearing Date | October 2026 |
Under UK law, Ofcom is able to impose fines on Meta based on its worldwide revenue, rather than the revenue of an individual site or app, and regardless of whether that revenue relates to regulated services.
“We believe fees and penalties should be based on the services being regulated in the countries they’re being regulated in,” a Meta spokesperson said in a statement to Reuters.
Why This Matters
| Aspect | Implication |
|---|---|
| Current Diversification | Meta selling AI-powered glasses, AI models, planning humanoid robots |
| Meta’s Argument | These ventures should not be considered when levying penalties over Facebook violations |
| Broader Impact | This will become a bigger issue as Meta diversifies revenue intake |
These types of provisos are built into many regulations, including EU DSA regulations, where tech platforms can be fined a percentage of their worldwide revenue. Meta argues this approach is unfair.
The US Challenge: Depression Lawsuit Verdict
| Aspect | Details |
|---|---|
| Jury Finding | Meta and Google’s YouTube have significant health impacts due to intentionally designed, addictive systems |
| Compensatory Damages | $3 million |
| Punitive Damages | $3 million |
| Meta’s Share | $4.2 million |
| YouTube’s Share | $1.8 million |
In March, a jury found that both Meta and Google’s YouTube can have significant health impacts on users, due to intentionally designed, addictive systems. The jury said both companies ignored risks in order to maximize business opportunities.
Meta is now seeking to get the ruling overturned. Google also plans to appeal the jury verdict.
The Stakes
| Risk | Details |
|---|---|
| Financial | $4.2 million penalty for Meta |
| Precedent | The finding could prompt others to pursue similar litigation |
| Future Liability | Meta seeking to shield itself from future penalties |
While the financial penalties are one element, the finding could also prompt others to pursue similar litigation. Unsurprisingly, Meta is now seeking to get the ruling overturned, in order to shield itself from future penalties.
What’s Next
- UK Challenge: Hearing scheduled for October 2026
- US Challenge: Meta filed motion for new trial; Google also plans to appeal
Given the potential precedent for future penalties and litigation, it’s not surprising to see Meta challenging both rulings. It will be interesting to see whether the company can present a strong enough case to overturn these rulings.
