Meta Platforms, Inc. (META) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Meta Platforms, Inc. surfaced in its latest filing.

• In Q1 2026, internet disruptions in Iran and a restriction on access to WhatsApp in Russia caused a slight quarter-over-quarter decline in total Family daily active people.Q1 2026
• European courts invalidating the EU-U.S. Data Privacy Framework (DPF) may prevent us from offering Facebook and Instagram in Europe.
• Beginning in 2022, the war in Ukraine and service restrictions imposed by the Russian government adversely affected user growth and engagement.2022
• Advertising business was adversely affected by the war in Ukraine and service restrictions by the Russian government, as well as conflicts in the Middle East.2022
• Apple's 2021 iOS changes reduced our ability to target and measure advertising, negatively impacting advertising revenue.2021
• The European Commission opened formal proceedings in March 2024 regarding our 'subscription for no ads' model's compliance with the DMA, with a final decision in April 2025 that the model does not comply.April 2025
• In November 2024, we began offering users in the EU, EEA, and Switzerland who use our services free-of-charge with ads an option to see less personalized ads (LPA).November 2024
• We changed the legal basis for behavioral advertising on Facebook and Instagram in the EU, EEA, and Switzerland from 'legitimate interests' to 'consent'.
• In November 2023, we began offering users in the EU, EEA, and Switzerland a 'subscription for no ads' alternative.November 2023
• The European Data Protection Board published an opinion on the operation of 'subscription for no ads' models under GDPR.
• We have appealed the European Commission's April 2025 decision, but further modifications to our model may be imposed during the appeal process.April 2025
• The Nevada Attorney General is seeking to enjoin our offering of default end-to-end encryption on Messenger for all Nevada residents under the age of 18.
• In 2021, we announced a shift in our business and product strategy to focus on helping to bring the metaverse to life.2021
• Juries have returned liability verdicts against us in two trials in U.S. youth-related litigation matters.
• Additional bellwether trials are scheduled for 2026 and beyond.2026
• As of June 30, 2026, we had $349.31 billion of non-cancelable contractual commitments, most of which are related to third-party cloud capacity arrangements and other investments in technical infrastructure.June 30, 2026
• In Q4 2025, methodology for violating accounts estimation was updated, resulting in an estimate that less than 5% of worldwide DAP consisted solely of violating accounts.Q4 2025
• In September 2021, media coverage from allegations and release of internal documents by a former employee caused negative publicity.September 2021
• Completed divestiture of Giphy in 2023 following the United Kingdom Competition and Markets Authority's order.2023
• The FTC sought to enjoin the proposed acquisition of Within Unlimited.
• IRS issued formal assessments in 2016 and 2018 relating to transfer pricing with foreign subsidiaries for the 2010 through 2013 tax years.2016
• The One Big Beautiful Bill Act (OBBBA) enacted in July 2025 had a significant impact on our tax obligations and effective tax rate for the third quarter of 2025.July 2025
• In January 2026, the OECD introduced new guidance, including a 'Side-by-Side Safe Harbor,' allowing U.S. headquartered companies to remain subject to only U.S. global minimum taxes (specifically, the Corporate Alternative Minimum Tax (CAMT)) while exempting them from Pillar Two.January 2026
• In 2020, Hong Kong adopted a National Security Law that provides authorities with the ability to obtain information, remove and block access to content, and suspend user services.2020
• Hong Kong passed additional national security legislation in 2024.2024
• Access to Facebook and Instagram was restricted in Russia in 2022 and the services were then prohibited by the Russian government.2022
• The IDPC issued a Final Decision in May 2023 concluding that Meta Platforms Ireland's reliance on SCCs for certain EEA Facebook user data transfers violated GDPR, imposing a EUR €1.2 billion fine and corrective orders.May 2023
• A lawsuit regarding WhatsApp's 2021 updates is currently pending before the Supreme Court of India.2021
• Entered into a settlement and modified consent order in July 2019 to resolve FTC inquiry, effective April 2020.April 2020
• FTC initiated an administrative proceeding alleging deficient compliance and violations of COPPA and the COPPA Rule.
• Entered into a settlement in July 2024 to resolve a lawsuit by the state of Texas in connection with the 'tag suggestions' feature and other uses of facial recognition technology.July 2024
• Subject to a lawsuit by the FTC beginning in 2020 alleging violations of antitrust laws, including by acquiring Instagram in 2012 and WhatsApp in 2014.2020
• European Commission issued a fine in November 2024 for tying Facebook Marketplace to Facebook and using data in a manner infringing European Union competition rules.November 2024
• In April 2019, the European Union passed the European Copyright Directive expanding online platform liability for copyright infringement.April 2019
• In June 2025, the Brazilian Supreme Court partially invalidated the country's intermediary liability framework.June 2025
• The Digital Services Act in the European Union started to apply to our business as of August 2023.August 2023