Meta to Pay $25M Settlement in Trump Lawsuit

Meta legal settlement with Trump

Donald Trump sued Meta in 2021 after his accounts were suspended following the Capitol riots on 6 January. The lawsuit ended with Meta agreeing to a $25 million settlement without admitting wrongdoing. This amount includes $22 million for Trump’s presidential library and covers legal fees and other plaintiffs.

Meta suspended Trump’s Facebook and Instagram accounts in 2021 for at least two years. However, Meta lifted the ban in July 2024, ahead of the upcoming US presidential elections. The Wall Street Journal first reported the settlement.

Trump’s relationship with Meta’s CEO, Mark Zuckerberg, has been tumultuous. Their ties worsened after the 2021 suspension, with Trump calling Facebook an “enemy of the people” in 2024. Despite this, Zuckerberg attended Trump’s inauguration and made significant financial contributions to inauguration-related events.

Separately, Twitter, now rebranded as X under Elon Musk, also permanently banned Trump. Musk later reinstated Trump’s account in 2022 after conducting a public poll.

Meta’s AI Investments Amid Competition

Meta recently defended its $65 billion investment in artificial intelligence (AI), even as tech markets experienced turbulence. Investors questioned the rise of Chinese AI competitor DeepSeek, which achieved success at lower development costs.

Mark Zuckerberg acknowledged the competition but emphasized Meta’s long-term vision for AI. He told investors that releasing open-source AI models globally is essential for US competitiveness. He believes establishing an American standard for open-source AI will offer strategic advantages.

Meta bucked the market trend, with its stock rising after posting strong quarterly earnings. Its revenue hit $48 billion in the last quarter of 2024, a 21% increase year-over-year, while profits rose 49% to over $20 billion. Despite debates on AI spending, Zuckerberg remains committed to major infrastructure investments, seeing them as critical for serving Meta’s global user base.

Zuckerberg also discussed smart glasses, predicting their mainstream adoption within a decade. Additionally, he aims to revive Facebook’s popularity through “cultural relevance,” competing with platforms like TikTok and Instagram.

Meta’s decision to end fact-checking raised questions, but Zuckerberg defended it, favoring community-driven notes as a more effective alternative. Despite changes, advertiser demand remained strong.

Meta’s future AI development, infrastructure expansion, and innovation efforts reflect its determination to maintain its technological edge amid fierce global competition.

Author

  • Silke Mayr

    Silke Mayr is a seasoned news reporter at New York Mirror, specializing in general news with a keen focus on international events. Her insightful reporting and commitment to accuracy keep readers informed on global affairs and breaking stories.

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