Meta Platforms, Inc., previously known as Facebook, Inc. and TheFacebook, Inc., is an American multinational technology conglomerate headquartered in Menlo Park, California. Meta owns and operates several widely-used platforms and services, including Facebook, Instagram, Threads, and WhatsApp. Advertising accounts for nearly 98% of its revenue, highlighting its primary business model.
In 2021, the company rebranded from Facebook to Meta to emphasize its shift towards building the metaverse, a vision of an integrated virtual environment that connects its various products and services. This move is part of a broader strategy to expand beyond social media into the immersive world of virtual reality (VR) and augmented reality (AR).
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| Founded | January 4, 2004 in Cambridge, Massachusetts, U.S. |
| Headquarters | Menlo Park, California ,U.S |
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| Area served | Worldwide |
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| Owner | Mark Zuckerberg (13.68% equity; 61.2% voting) |
| Revenue |  US$134.9 billion (2023) |
| Number of employees | 72,404 (Sept. 2024) |
| Divisions | Reality Labs |
| Subsidiaries | Novi Financial |
Meta ranks as one of the largest American information technology companies, placing alongside other major players such as Alphabet (Google), Amazon, Apple, and Microsoft. According to the Forbes Global 2000 in 2023, Meta was ranked #31. In 2022, the company was the third-highest spender on research and development (R&D) worldwide, with a significant expenditure of US$35.3 billion.
The company has made a series of acquisitions, including Oculus, which has been integrated into Reality Labs, Mapillary, CTRL-Labs, and a 9.99% stake in Jio Platforms. Meta has also explored non-VR hardware ventures, such as the now-discontinued Meta Portal smart displays, and has partnered with Luxottica on the Ray-Ban Stories smartglasses series.
2018–2020: Focus on the Metaverse
Lasso was a short-video sharing app developed by Facebook in 2018, intended to compete with TikTok, primarily targeting teenagers. However, despite its initial release on iOS and Android, Lasso struggled to gain traction. Facebook announced in July 2020 that it would shut down the app by July 10, 2020.
Virtual Reality and the Metaverse Vision
In 2018, Jason Rubin, the lead of Oculus, sent a 50-page vision document to Facebook's leadership, titled "The Metaverse." In the document, Rubin highlighted the underperformance of Facebook's virtual reality (VR) business, acknowledging that despite substantial investments in VR content for early adopters, it had not gained the mass adoption that the company had hoped for. He urged Facebook to accelerate its efforts in the VR space and to outpace competitors like HTC, Apple, and Google by creating a metaverse, a fully integrated digital world that combined virtual reality, augmented reality, and other digital platforms. Rubin's vision emphasized the importance of keeping competitors out of the VR space, essentially arguing that Facebook should dominate the metaverse and VR ecosystem.
Libra and Diem Cryptocurrency Project
In May 2019, Facebook launched Libra Networks, a subsidiary with the goal of developing a stablecoin cryptocurrency. This project attracted support from major financial institutions, including Visa, Mastercard, PayPal, and Uber, who collectively planned to invest $10 million each in the cryptocurrency, named Libra. The intention was to launch Libra in 2021 once regulatory approval was obtained from the Swiss Financial Market Supervisory Authority. However, the project faced significant regulatory pushback, particularly from governments and financial regulators. Amidst mounting controversy, Libra was rebranded to Diem in an attempt to distance the project from its previous image.
In January 2022, Diem was shut down and sold off after continued regulatory issues, and the ambitious plans for a global Facebook-backed cryptocurrency were ultimately abandoned.
Growth During the COVID-19 Pandemic
During the COVID-19 pandemic, global use of online services, including Facebook, surged as people increasingly turned to digital platforms for work, communication, and social connection. Zuckerberg predicted that this trend would lead to a "permanent acceleration" in the adoption of online services, suggesting that this shift toward more virtual interaction would persist even after the pandemic ended.
In line with this increased reliance on digital platforms, Facebook experienced substantial growth. The company's workforce nearly doubled from 48,268 employees in March 2020 to over 87,000 employees by September 2022, as it expanded to meet the growing demands of users and the evolving digital landscape.
This period marked a turning point for Facebook as it laid the foundation for its future vision of the metaverse while continuing to navigate the challenges of an evolving regulatory environment and its place within the broader tech industry.
2021: Rebrand as Meta
In October 2021, Facebook announced its rebrand, changing its name from Facebook, Inc. to Meta Platforms, Inc. The decision was made amidst intense scrutiny over the company’s practices and a series of damaging whistleblower leaks, which highlighted concerns regarding its social services and overall operations. In his Q3 2021 Earnings Call, Mark Zuckerberg acknowledged the criticisms and discussed the company's long-term shift towards the metaverse, a digital space merging social media, virtual reality (VR), and augmented reality (AR) technologies. However, the rebranding itself, along with the vision of the metaverse, was not formally introduced until October 28, 2021, during Facebook Connect.
The name Meta reflects the company’s new strategic focus on the metaverse, signaling a departure from its identity as primarily a social media company. Meta's ultimate goal was to build an interconnected virtual world that would transcend physical reality through VR and AR experiences.
Before the rebrand, Meta had already been registered as a trademark by a Canadian company offering data analysis services related to scientific literature. This company, which was acquired by the Chan Zuckerberg Initiative (CZI) in 2017, transferred the rights to the Meta name to Meta Platforms after its project was deprioritized in 2022.
2022: Declining Profits and Mass Layoffs
Financial Decline and Impact of Apple's Privacy Changes
In February 2022, Meta reported a significant decline in profits for Q4 2021, with no growth in monthly active users. The company forecasted that its revenue growth would stall, in part due to the new privacy measures by Apple, particularly the App Tracking Transparency feature. These changes were expected to cost Meta approximately $10 billion in advertising revenue, or roughly 8% of its total revenue from 2021. Zuckerberg pointed to competition from apps like TikTok as another challenge contributing to the decline.
The market responded sharply to these negative reports, leading to a 27% drop in Meta's share price, wiping out about $230 billion of its market value. Zuckerberg’s net worth fell by as much as $31 billion, as his holdings in Meta made up the bulk of his wealth. This marked one of the largest declines in market value for any company.
Data Privacy Controversy
In March 2022, Bloomberg reported that Meta had turned over personal data such as phone numbers, addresses, and IP addresses to hackers posing as law enforcement officials, using forged documents. A Meta representative stated that the company uses advanced systems to verify law enforcement requests and prevent abuse.
Leadership Changes
In June 2022, Sheryl Sandberg, Meta’s COO for 14 years, announced she would step down from her position. She was succeeded by Javier Olivan, who took on a "more traditional" role.
Bans and Global Backlash
In March 2022, amid the ongoing Russian invasion of Ukraine, Meta (except for WhatsApp) was banned in Russia, and the company was labeled a terrorist organization for allegedly promoting Russophobia and hate speech. Meta appealed the ban, but a Moscow court upheld it in June 2022.
Ray-Ban Stories and the Metaverse Push
Also in March 2022, Meta, in partnership with Luxottica, launched Ray-Ban Stories, a line of smartglasses that could play music and take pictures. Meta expressed satisfaction with customer feedback but declined to disclose the product’s sales performance as of September 2022.
Revenue Decline and Layoffs
In July 2022, Meta experienced its first year-on-year revenue decline, with total revenue slipping by 1% to $28.8 billion. Analysts attributed the loss to limited ad tracking, Apple's privacy changes, and growing competition from TikTok. In October 2022, Meta's market value dropped to $268 billion, a $700 billion loss from the previous year, and it fell out of the top 20 US companies by market cap.
In November 2022, Meta laid off 11,000 employees, about 13% of its workforce. Zuckerberg admitted that he had made a mistake by overestimating the long-term growth of e-commerce during the pandemic and attributed the layoffs to increased competition, the economic downturn, and advertising challenges. Meta also announced plans to lay off another 10,000 employees starting in April 2023.
Struggling with AI and Competitors
By 2022, Meta faced increased pressure to catch up to other tech companies in terms of artificial intelligence (AI) hardware and software. Meta had initially relied on less expensive CPUs instead of GPUs for AI work, which proved to be inefficient compared to its competitors' approaches.
This period marked a series of financial and operational setbacks for Meta as the company struggled to balance its ambitious metaverse vision with immediate challenges in advertising revenue, user growth, and increased competition from platforms like TikTok
2023: Threads, AI, and All-Time High Stock Value
In 2023, Meta continued to evolve, with significant developments in its product offerings and investments in AI and the metaverse. Despite facing regulatory challenges and fines, Meta reported strong growth in certain areas, notably its AI initiatives and Threads.
Regulatory Challenges
In 2023, Ireland’s Data Protection Commissioner imposed a record €1.2 billion fine on Meta for transferring user data from Europe to the United States without adequate protections for EU citizens. This fine was part of ongoing regulatory scrutiny over Meta’s data handling practices.
Layoffs and Focus on AI
Meta continued its restructuring efforts, announcing a new round of layoffs in March 2023, cutting 10,000 employees and closing 5,000 open positions to streamline operations. Despite these layoffs, Meta exceeded analysts' expectations in its Q1 2023 earnings, largely due to its increased focus on AI. Meta also introduced Llama 2, its generative AI model, available for commercial use through partnerships with major cloud providers like Microsoft.
Launch of Threads and Metaverse Developments
In July 2023, Meta launched Threads, a new social media app designed to rival Twitter. This was part of Meta’s strategy to diversify its portfolio of apps and attract new user engagement. In the same month, Meta announced the release of Llama 2, marking the first project from Meta's generative AI group. Meta adopted an open-source model for Llama 2, allowing developers to experiment with the model while Meta continued to refine its capabilities.
Regulatory Actions in Canada and Europe
In August 2023, Meta removed news content from Facebook and Instagram in Canada in response to the Online News Act, which required tech platforms to compensate news outlets. In November 2023, Meta launched an ad-free service in Europe, allowing subscribers to opt out of personalized advertising.
Stock Performance and All-Time High
Meta ended 2023 as one of the best-performing technology stocks of the year, with its share price rising by 150%. By January 2024, Meta reached an all-time high stock value, bringing its market capitalization close to the $1 trillion mark.
Meta’s Global Initiatives and Challenges
Meta continued to grapple with global challenges in 2023, including content moderation issues and data privacy concerns. In May 2023, Meta faced criticism regarding Instagram’s content removal policies when influencer Esaa Ahmed-Adnan was targeted by extortionists manipulating Meta’s rights management tools. This situation highlighted the difficulties Meta faces in moderating content, especially in developing regions.
In October 2023, Meta removed accounts linked to Russian state media and other influence operations. This move was part of Meta’s broader efforts to counter covert influence campaigns, particularly in light of the Russian invasion of Ukraine.
2024 and Beyond: Expanding AI and Regulatory Challenges
AI and Product Development
In October 2024, Meta announced its new AI model called Movie Gen, which can generate realistic video and audio clips based on user prompts. The model was designed to support content creators and integrate into Meta’s broader suite of products.
Meta also revealed Orion, its first pair of augmented reality glasses, although production challenges led the company to limit their release to internal use.
Investigations and Global Actions
Meta faced investigations from various authorities, including the FDA and the European Commission, over concerns related to illegal activities on its platforms and child safety issues. In September 2024, Meta announced the permanent ban of Russian state media outlets, a response to foreign interference in online political discourse.
In November 2024, Meta continued to fight scams by closing 2 million accounts involved in fraudulent activities across multiple regions. The company also announced a new measure requiring financial services advertisers in Australia to verify their information in an effort to combat scams.
Global Outage
In December 2024, Meta experienced a significant global outage, impacting Facebook, Instagram, and other social media services. The outage was resolved after Meta acknowledged the issue and worked to restore its platforms.
These developments in 2023 and 2024 demonstrate Meta's continuing transformation from a social media giant to a company focused on AI innovation, augmented reality, and the metaverse, despite ongoing regulatory, operational, and content moderation challenges.
Mergers and Acquisitions by Meta Platforms
Meta has been an active acquirer of companies, with many of its acquisitions focused on talent, technologies, and expanding its product offerings. Here are some key acquisitions:
Key Acquisitions
Instagram (April 2012): Meta's first major acquisition, Instagram was acquired for US$1 billion in cash and stock. Instagram has since become one of the most important social media platforms under Meta's umbrella.
Onavo (October 2013): An Israeli mobile web analytics company, Onavo was acquired to help Facebook, Inc. improve its mobile analytics capabilities.
WhatsApp (February 2014): Facebook acquired the mobile messaging company WhatsApp for US$19 billion in cash and stock, marking one of the largest tech acquisitions of its time.
Oculus VR (March 2014): Facebook acquired Oculus VR for $2.3 billion, a pivotal move towards its virtual reality and metaverse ambitions. Oculus launched its first consumer virtual reality headset in 2016. In 2022, Oculus was rebranded as Meta Quest following Facebook's rebranding to Meta.
Beat Games (November 2019): Meta acquired Beat Games, the developer behind the popular virtual reality game Beat Saber, a key part of Meta's VR gaming strategy.
Giphy (May 2020): Meta acquired the popular GIF platform for $400 million to integrate it with Instagram. However, the UK’s Competition and Markets Authority (CMA) ruled in 2021 that Meta must sell Giphy due to concerns over its impact on competition in display advertising. Meta eventually agreed to sell Giphy to Shutterstock for $53 million in May 2023.
Kustomer (November 2020): Meta announced the acquisition of the customer service platform Kustomer, which provides chatbot and customer service solutions, for a reported valuation of over $1 billion. The deal closed in February 2022 after regulatory approval.
Lofelt (September 2022): Meta acquired Lofelt, a Berlin-based haptic tech startup, to further enhance its capabilities in virtual reality and augmented reality hardware.
Lobbying and Political Influence
Meta has actively engaged in lobbying efforts to influence regulatory decisions, particularly in relation to its business practices, privacy concerns, and competition.
Lobbying Expenditures: In 2020, Meta (formerly Facebook) spent $19.7 million on lobbying, the largest amount among the Big Tech companies that year. The company hired 79 lobbyists to influence policy decisions in Washington, D.C.
Lobbying on Capitol Hill: Meta’s lobbying efforts included hiring former congressional aides, such as John Branscome, to navigate regulatory challenges from lawmakers, particularly with regard to privacy and antitrust issues.
Political Donations: In December 2024, Meta donated $1 million to the inauguration fund of President-elect Donald Trump, further signaling the company's involvement in political support.
Challenges and Regulatory Issues
Meta’s acquisition strategy and lobbying efforts have faced significant scrutiny over the years, especially concerning antitrust investigations, privacy issues, and its dominance in the tech industry. The company has often found itself at odds with regulators, such as the UK’s CMA and various privacy regulators across Europe.
Meta’s ongoing lobbying efforts and acquisitions reflect its ambition to maintain and expand its influence in the tech industry, particularly as it pivots toward the metaverse and AI technologies. However, these strategies also attract criticism regarding competition, privacy, and ethical concerns.
Censorship and Content Moderation
Meta has faced significant scrutiny and criticism over its content moderation practices, which involve censoring or removing certain content from its platforms. The company's policies and decisions have sparked debates regarding censorship, free speech, and its influence on political discourse.
COVID-19 Content Censorship (2024)
In August 2024, Mark Zuckerberg sent a letter to Jim Jordan, revealing that during the COVID-19 pandemic, the Biden administration had asked Meta to limit the dissemination of certain COVID-19-related content. This included requests to remove or restrict humor and satire related to the pandemic on platforms like Facebook and Instagram. The revelation raised concerns about government influence on social media platforms and the potential suppression of free speech during a global crisis.
Censorship of Palestinian Groups (2016)
In 2016, Meta hired Jordana Cutler, a former employee of the Israeli Embassy to the United States, to serve as its policy chief for Israel and the Jewish Diaspora. Critics argue that Cutler's position created a conflict of interest, as she pushed for the removal of accounts belonging to Students for Justice in Palestine chapters in the United States. Some claimed this gave undue influence to the Israeli government over Meta’s content policies. These actions sparked concerns about political bias in content moderation and the influence of foreign governments on Meta's global policies.
Disinformation Concerns
Falsified Video of Joe Biden (2024)
In 2024, Meta came under fire for continuing to distribute a falsified video of US President Joe Biden even after it had been proven to be fake. The video was widely circulated on Meta’s platforms, and critics expressed concerns about the company’s role in spreading disinformation, which could have significant implications for public perception and political discourse.
Changes in Content Moderation Policies (2024)
Ahead of Donald Trump's second presidential term, Meta made significant changes to its content moderation practices. The company ended its use of third-party fact-checkers and replaced it with a user-run community notes system, similar to the one used by X (formerly Twitter). Meta executives reportedly gave advance notice to Trump officials about this shift in policy.
Additionally, Meta's move to Texas for its content review teams and changes to its hateful conduct policy raised concerns. These changes eliminated restrictions on certain forms of hate speech, including anti-LGBTQ and anti-immigrant rhetoric. Some of the newly permissible statements included derogatory comments about the LGBTQ+ community and racial groups, which sparked widespread outrage and criticism.
Anti-LGBTQ+ Content Moderation (January 2025)
In January 2025, Meta faced backlash for its role in removing or restricting LGBTQ+ content on its platforms. This was part of Meta's broader efforts to address anti-LGBTQ+ hate speech. However, critics argued that the removal of LGBTQ+ content inadvertently led to the stifling of LGBTQ+ visibility and expression.
Reports indicated that posts celebrating Pride or advocating for LGBTQ+ rights were flagged and removed, sometimes for unclear or inconsistently applied reasons. This raised concerns that Meta's content moderation policies, designed to combat hate speech, were disproportionately affecting LGBTQ+ individuals and communities, particularly in online spaces that had historically been important for LGBTQ+ outreach and support.
Meta responded to these concerns by acknowledging the issue and pledging to refine its moderation strategies. The company indicated it would review its algorithms to better distinguish between harmful hate speech and legitimate LGBTQ+ content. Meta also reaffirmed its commitment to Diversity, Equity, and Inclusion (DEI) and pledged to collaborate with advocacy groups to improve safeguards for LGBTQ+ voices online.
Lawsuits Involving Meta Platforms
Meta Platforms (formerly Facebook, Inc.) has faced numerous lawsuits related to privacy violations, antitrust issues, content moderation practices, and working conditions. Below are some notable lawsuits the company has been involved in:
1. Privacy Violations (Australia, 2020)
In March 2020, the Office of the Australian Information Commissioner (OAIC) filed a lawsuit against Facebook over privacy violations linked to the Cambridge Analytica scandal. The lawsuit alleged significant and persistent infringements of privacy laws. The OAIC estimated that over 311,000 Australians were affected. Each violation of the Privacy Act could result in a fine of up to $1.7 million.
2. Antitrust Lawsuit (U.S., 2020)
In December 2020, the U.S. Federal Trade Commission (FTC) and 46 states (excluding Alabama, Georgia, South Carolina, and South Dakota), as well as the District of Columbia and Guam, launched the Federal Trade Commission v. Facebook antitrust lawsuit. The case centered on Facebook's acquisitions of Instagram and WhatsApp, which the FTC argued led to a monopolistic market in the U.S. social networking space. The FTC sought to force Facebook to divest from both platforms in order to break up the conglomerate. Legal experts, including former FTC chairman William Kovacic, suggested that proving the case would be difficult, as the government would need to show harm to competition and consumers without Facebook, WhatsApp, and Instagram being part of the same entity.
3. Fines in Russia (2021)
In December 2021, Meta was fined $27 million by a Russian court for failing to remove unspecified banned content from its platforms. The fine was linked to Meta’s annual revenue in the country.
4. Working Conditions in Kenya (2022)
In May 2022, a lawsuit was filed in Kenya against Meta and its outsourcing partner Sama, accusing the companies of poor working conditions for workers moderating content on Facebook. The lawsuit claimed that 260 workers were laid off without clear reasoning. The suit sought compensation and demanded that outsourced moderators be given the same health benefits and pay scale as full Meta employees.
5. Mental Health and Platform Use (2022)
In June 2022, 8 lawsuits were filed in the U.S. alleging that exposure to Facebook and Instagram led to mental health issues, including suicides, eating disorders, and sleeplessness. These cases followed testimony from a former Facebook employee in Congress, who said the company refused to take responsibility for the mental health impact of its platforms. In response, Meta highlighted efforts to provide parental controls and resources to address eating disorders and prevent children under 13 from signing up for its platforms.
6. Housing Discrimination (2022)
In June 2022, Meta settled a lawsuit with the U.S. Department of Justice over alleged housing discrimination through targeted advertising. The lawsuit claimed that Meta allowed advertisers to exclude individuals based on sex, race, religion, and other protected characteristics, violating the Fair Housing Act. Meta was fined $115,054 and required to adjust its advertising algorithms by the end of 2022.
7. General Data Protection Regulation (GDPR) Violations (2023)
In January 2023, Meta was fined €390 million for violations of the European Union’s General Data Protection Regulation (GDPR).
8. Breaches of Data Privacy Laws (2023)
In May 2023, the European Data Protection Board imposed a record €1.2 billion fine on Meta for breaching EU data privacy laws by transferring Facebook user data to servers in the U.S., violating the EU’s privacy standards.
9. Biometric Data Lawsuit (2024)
In July 2024, Meta agreed to pay $1.4 billion to settle a lawsuit filed by the Texas Attorney General. The lawsuit accused Meta of collecting users' biometric data without consent. The settlement marked the largest privacy-related settlement ever obtained by a state attorney general.
10. Fake Investment Ads in Japan (2024)
In October 2024, 30 plaintiffs in Japan filed lawsuits against Meta Platforms, claiming that they were defrauded by fake investment ads on Facebook and Instagram, which featured false celebrity endorsements. The plaintiffs were seeking approximately $2.8 million in damages.
These lawsuits illustrate the ongoing legal challenges Meta faces, particularly around issues of privacy, antitrust, content moderation, and mental health. The company has faced significant scrutiny and regulatory action across the globe, highlighting the complexities of operating such a large social media platform with influence over millions of users worldwide.
Structure of Meta Platforms
Management
Meta's key management team, responsible for overseeing the company’s global operations, includes the following executives:
- Mark Zuckerberg – Chairman and Chief Executive Officer (CEO)
- Javier Olivan – Chief Operating Officer (COO)
- Sir Nick Clegg – President, Global Affairs
- Susan Li – Chief Financial Officer (CFO)
- Andrew Bosworth – Chief Technology Officer (CTO)
- David Wehner – Chief Strategy Officer
- Chris Cox – Chief Product Officer
- Jennifer Newstead – Chief Legal Officer
As of October 2022, Meta had 83,553 employees worldwide.
Board of Directors (As of June 2024)
Meta’s board consists of influential individuals from various industries. The directors include:
- Mark Zuckerberg – Chairman, Co-founder, and CEO
- Peggy Alford – Non-executive Director, EVP of Global Sales at PayPal
- Marc Andreessen – Non-executive Director, Co-founder, and General Partner at Andreessen Horowitz
- Drew Houston – Non-executive Director, CEO of Dropbox
- Nancy Killefer – Non-executive Director, Senior Partner at McKinsey & Company
- Robert M. Kimmitt – Non-executive Director, Senior International Counsel at WilmerHale
- Tracey Travis – Non-executive Director, EVP and CFO at Estée Lauder Companies
- Tony Xu – Non-executive Director, CEO of DoorDash
- Hock Tan – CEO of Broadcom
- John D. Arnold – Former Executive at Enron
- Dana White – Non-executive Director, CEO of UFC
Company Governance
Meta is known for a highly centralized decision-making structure. Roger McNamee, an early Facebook investor, described it as "the most centralized decision-making structure" he had ever seen in a large company. Critics, including Facebook co-founder Chris Hughes, have argued that Zuckerberg's control over the company is excessive and that it should be split into smaller entities. Hughes raised concerns about Zuckerberg's unchecked power, stating that it is a threat to democracy and competition. European Union Competition Commissioner Margrethe Vestager has said that splitting Facebook should be considered only as a last resort.
Revenue
Meta has experienced significant growth in its revenue since its founding. Here’s a summary of Meta's annual revenue (in millions USD) over the years:
| Year | Revenue (USD) | Growth (%) |
|---|---|---|
| 2004 | $0.4 | — |
| 2005 | $9 | 2150 |
| 2006 | $48 | 433 |
| 2007 | $153 | 219 |
| 2008 | $280 | 83 |
| 2009 | $775 | 177 |
| 2010 | $2,000 | 158 |
| 2011 | $3,711 | 86 |
| 2012 | $5,089 | 37 |
| 2013 | $7,872 | 55 |
| 2014 | $12,466 | 58 |
| 2015 | $17,928 | 44 |
| 2016 | $27,638 | 54 |
| 2017 | $40,653 | 47 |
| 2018 | $55,838 | 37 |
| 2019 | $70,697 | 27 |
| 2020 | $85,965 | 22 |
| 2021 | $117,929 | 37 |
| 2022 | $116,609 | -1 |
| 2023 | $134,902 | 16 |
In 2020, Facebook ranked No. 34 on the Fortune 500 list with nearly $86 billion in revenue, primarily generated from advertising.
Advertisers on Meta Platforms
Meta has seen significant growth in the number of advertisers on its platforms.
- In February 2015, Meta announced that it had reached 2 million active advertisers, mostly from small businesses.
- In March 2016, Meta reported that the number of active advertisers had increased to 3 million, with over 70% of them coming from outside the United States.
Meta uses a variable pricing model for its ads based on an auction system, which determines ad placements based on engagement levels. The company employs two main advertising targeting methods:
- Targeted audiences – Based on users' interests, likes, and behaviors.
- Look-alike audiences – A method where advertisers can target users who share similar traits to an existing audience.
With its strong advertising model and a growing number of advertisers, Meta remains one of the largest digital advertising platforms in the world.
Tax Affairs
Meta Platforms (formerly Facebook) has faced scrutiny regarding its tax practices, especially concerning the Double Irish tax structure. Here are key points related to the company's tax issues:
Transfer Pricing Dispute: The U.S. Internal Revenue Service (IRS) challenged Facebook's valuation of intellectual property (IP) when it was transferred from the U.S. to Facebook Ireland in 2010. The Irish subsidiary revalued the IP higher before charging out, which is part of Meta's Double Irish tax structure. The case remains ongoing, and Meta could face a potential fine of $3 to $5 billion.
Tax Cuts and Jobs Act (2017): The Tax Cuts and Jobs Act introduced changes in how Meta's global tax obligations were calculated. Under the new rules, Meta Platforms Ireland is subject to the U.S. GILTI (Global Intangible Low-Taxed Income) tax, set at 10.5% on its global intangible profits, including profits in Ireland. Meta's effective U.S. tax rate would be approximately 11%, compared to a 13.125% special rate for U.S.-based IP companies.
Tax Differences: Despite the U.S.-Irish tax differences, Meta demonstrated the insignificance of the disparity when it moved 1.5 billion non-EU accounts to the U.S. to limit exposure to General Data Protection Regulation (GDPR), reducing its tax exposure in the process.
Facilities
Meta operates a range of offices and data centers globally. Here’s an overview:
Offices: Meta has numerous offices worldwide. Some notable locations include:
- Meta Platforms Ireland (formerly Facebook Ireland), which contracts with international users outside the U.S. and Canada to avoid U.S. taxes.
- Hyderabad, India: Meta opened an office in 2010 to house teams for online advertising and developer support.
- London: Meta opened a new headquarters in Fitzrovia in 2017.
- Cambridge, Massachusetts: In 2018, Meta opened an office for its "Connectivity Lab".
- Taipei, Taiwan: Meta's headquarters opened in 2019.
- Dubai, UAE: Meta opened new regional headquarters in 2022.
- London Office Lease: In September 2023, Meta paid £149 million to break its lease at Triton Square London despite having 18 years left on its contract.
Data Centers: Meta operates 21 data centers as of 2023. The company committed to purchasing 100% renewable energy and reducing its greenhouse gas emissions by 75% by 2020. One of its technologies, Fabric Aggregator, accommodates large regions and varied traffic patterns.
Reception
Meta and its activities have faced significant criticism from various groups and individuals, particularly after its rebranding to Meta:
- Alexandria Ocasio-Cortez, U.S. Representative, expressed concerns about Meta's influence, calling it a "cancer to democracy."
- Frances Haugen, a former Facebook employee and whistleblower, expressed skepticism about the company’s ability to improve under Mark Zuckerberg’s leadership, urging him to resign.
- Elon Musk criticized the concept of a VR-driven metaverse, stating he saw no compelling use case for it and was dismissive of the idea of people using headsets all day.
- User Experience in the Metaverse: In 2022, Louise Eccles from The Sunday Times shared her experience with Meta’s metaverse. While trying virtual reality (VR) for work and exercise, she found the social aspects of the metaverse to be uncomfortable and toxic. Eccles reported incidents of sexual harassment and exposure to offensive language. Additionally, she found users as young as 7 on the platform, despite age restrictions.
Meta continues to face challenges both in terms of public perception and its financial and tax strategies, with some critics arguing that the company’s dominance and business practices should be reexamined.
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- Meta platforms | FB stock price, company Overview & News (no date) Forbes. Available at: https://www.forbes.com/companies/meta-platforms/ (Accessed: 14 January 2025).
- Sinha, S. (2023) Noyb challenges Meta Platforms’ paid ad-free subscription service, details here, https://www.goodreturns.in/. Available at: https://www.goodreturns.in/news/noyb-challenges-meta-platforms-paid-ad-free-subscription-service-details-here-1314775.html (Accessed: 14 January 2025).
