Meta Settles Trump Lawsuit for $25 Million

Meta is paying a hefty $25 million to settle a lawsuit filed by former President Donald Trump over the suspension of his Facebook and Instagram accounts in 2021. According to The Wall Street Journal, around $22 million of the settlement will go to Trump’s presidential library, while the rest will be distributed among the plaintiffs involved in the case.

The controversy began after the January 6, 2021, attack on the U.S. Capitol, when a mob of pro-Trump supporters stormed the building, leading Facebook to suspend Trump’s account for 24 hours. The company cited two policy violations in Trump's posts, which included a video where Trump expressed sympathy for the rioters, even telling them, "We love you, you’re very special." Facebook, along with Twitter and YouTube, took further action by banning Trump indefinitely due to concerns about the risks posed by allowing the president to continue using their platforms during such a volatile time. Facebook CEO Mark Zuckerberg said that the risks of allowing Trump to remain active on the platform were simply "too great."

In response, Trump filed a class-action lawsuit against Facebook, Google, and Twitter, arguing that these companies, benefiting from Section 230 protections, were acting as public forums and should not have the right to ban him. The case had stalled until late 2023 when serious discussions began following a meeting between Zuckerberg and Trump at Mar-a-Lago. The negotiations reportedly included Trump telling Zuckerberg that settling the lawsuit would be necessary if Zuckerberg hoped to maintain a favorable relationship with the former president.

The settlement agreement seems to mark a significant shift in Meta’s approach to its relationship with Trump. Along with the $25 million payout, Meta also made notable changes to its content moderation policies, which included removing fact-checkers and introducing new methods for handling certain types of content. This move has prompted questions about the broader implications for the tech industry, particularly for smaller companies that may not have the resources to challenge high-profile lawsuits from powerful figures like Trump.

This settlement isn’t the first time Trump has secured financial settlements after lawsuits. Recently, ABC also agreed to pay $15 million to Trump’s library following a legal battle sparked by comments made during an interview. Meanwhile, CBS faces its own legal challenges after editing a 60 Minutes interview with Vice President Kamala Harris, with Trump reportedly suing the network. With a $25 million check now heading Meta’s way, all eyes will be on whether this signals a new era of financial settlements between tech companies and powerful figures who challenge their content policies. It remains to be seen whether this will have a chilling effect on media outlets or companies lacking the resources to push back against such lawsuits.