Washington, D.C.: U.S. President Donald Trump has signed a legal settlement with Meta, the parent company of Facebook and Instagram, that will see the tech giant pay approximately $25 million. The settlement arises from a 2021 lawsuit Trump filed against Meta and CEO Mark Zuckerberg over the suspension of his accounts following the January 6 Capitol riots.
Meta, which raised the final restrictions on Trump’s accounts in July 2024 ahead of the U.S. presidential election, will not admit wrongdoing as part of the agreement. The Wall Street Journal first documented the settlement.
Under the terms of the deal, about $22 million will be allocated to a fund for Trump’s presidential library, while the remaining amount will cover legal expenses and other complainants involved in the lawsuit.
Following Trump’s election victory in November, Mark Zuckerberg visited the former president’s Florida resort, Mar-a-Lago, signalling a potential warming of relations. The next month, Meta donated $1 million to Trump’s inauguration fund. Zuckerberg was also among the prominent guests at Trump’s recent inauguration at the U.S. Capitol, seated alongside global tech leaders.
Trump had long been integral of Zuckerberg and Facebook, branding the platform “anti-Trump” in 2017. After the suspension of his accounts, he escalated his rhetoric, calling Facebook an “enemy of the people” in March 2024.
Trump’s social media presence was also curtailed by Twitter—now rebranded as X—when the platform permanently suspended his account in 2021. However, after acquiring Twitter for $44 billion, Elon Musk reinstated Trump’s account in 2022 following a public poll in favour of the move.
Meta defended its fierce $65 billion investment in artificial intelligence (AI), despite U.S. tech stocks facing turbulence after the unexpected rise of Chinese AI app DeepSeek. Speaking to investors, Zuckerberg admitted DeepSeek’s rapid ascent but warned against drawing premature conclusions about its long-term impact on the AI industry.
He maintained that Meta’s responsibility to open-source AI would deliver a strategic advantage, positioning the U.S. as a leader in the evolving field. Zuckerberg stated that, “There’s heading to be an open-source standard globally, and I think for our national advantage, it must be an American standard.”
Despite broader market concerns, Meta’s stock saw gains in after-hours trading following stronger-than-expected financial results. The company reported $48 billion in earnings for the last quarter of 2024, marking a 21 percent increase year-over-year, with profits surging by 49 percent to exceed $20 billion.
Zuckerberg also highlighted the importance of 2025 for Meta’s broader product strategy. He restated his belief that smart glasses will replace traditional eyewear within the next decade, a market Meta has aggressively pursued. Additionally, he outlined plans to revitalise Facebook’s “cultural relevance” in the face of competition from platforms like Instagram and TikTok.
In a notable shift, Meta recently declared it would discontinue fact-checking, opting instead for a community-driven approach to misinformation management. Zuckerberg assured investors that the change had not affected advertiser demand.
With robust financial performance and an expanding AI infrastructure, Meta remains at the forefront of the tech industry. However, the rapid outcomes in AI and shifting social media dynamics continue to shape the company’s revolution in the year ahead.
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