Meta’s $25B Ruling, 15% Interest

Meta just got hit with a $25 billion court order over what a judge called “willful” violations of New Mexico’s consumer protection laws—levying 15% annual interest until paid, and putting top executives squarely in the legal crosshairs. This is more than a fine; it’s a warning shot for other states and a direct threat to Meta’s ability to operate if appeals fail or new restrictions kick in. With similar lawsuits brewing elsewhere and mounting legal risks tied to user privacy and data access, the company faces serious pressure on its core business and reputation.

But here’s the catch: even as litigation and regulatory heat rise, Meta is doubling down with massive bets on AI and long-form video. Reports say they’re exploring up to $95 billion in new financing to fund AI ambitions, while Instagram tests longer videos without sharing revenue with creators—a move that could alienate partners, with publisher groups already threatening to walk over AI training terms. Meanwhile, new stock splits and negative cash flow show the financial tightrope Meta is walking to pull this all off.

Based on reporting from BBC, Digiday, and The New York Times.

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