The Stainless Mark Zuckerberg

In a world where scandals and lawsuits can easily bring down the most powerful, there is one man who seems unshakeable. Neither harsh criticism nor serious accusations have been able to slow Mark Zuckerberg’s rise. From neglecting the mental health impacts of his platforms to his controversial handling of billions of users’ personal data, Zuckerberg continues to thrive with disconcerting consistency.

This enduring success is partly explained by an environment that is extremely favorable to the expansion of tech giants. Under the Obama administration, the climate conducive to technological innovation allowed companies like Facebook to grow at a dazzling speed, reaching such power that they sometimes act as states within a state. Of course, this protection is not without limits, but the legislative framework remains generally advantageous for these digital colossi. American laws, such as Section 230 of the Communications Decency Act (CDA), protect these companies from liability related to user-generated content on their platforms. Although partial, this legal protection constitutes a significant shield against numerous legal threats.

Yet as Zuckerberg continues to deftly navigate a sea of controversy, the question remains: How long can he stay the course in a world where pressures are mounting and tolerance from the public, regulators and governments is beginning to crumble? The future of the tech giant remains uncertain, and it may be in these gray areas that the real story lies waiting to be uncovered.

An American Dream Story

Mark Zuckerberg, along with Harvard classmates Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes, founded Facebook in 2004. What began as a social network for college students quickly grew into a global phenomenon. Driven by a bold vision and an unmatched ability to seize opportunities, Zuckerberg and his team transformed Facebook into a platform that connects billions of people around the world. In less than 15 years, the company has become one of Silicon Valley’s most influential companies, leaving its mark on the global digital ecosystem, including strategic acquisitions such as Instagram in 2012 and WhatsApp in 2014, which have strengthened its hold on social media.

Aware that the digital world is changing rapidly, Zuckerberg understood that he had to adapt his company to meet new market expectations and prepare for future challenges. It is in this context that in October 2021, the company formerly known as Facebook began a strategic shift by becoming Meta Platforms, Inc. This change, much more than a simple rebranding, illustrates Mark Zuckerberg's ambition to diversify the company's activities.

This transformation, beyond the ambition of a strategic shift, is also taking place in a context of tensions where the company is accumulating scandals. Among them, the Cambridge Analytica affair, revealed in 2018, remains one of the most significant. This political consulting firm had illegally exploited the personal data of millions of Facebook users without their consent, with the aim of manipulating public opinion, particularly during the 2016 American presidential election. Since then, Meta has been involved in scandals like in a vicious circle, continually confronting the company with new controversies.

Zuckerberg's Recent Revelations

On August 26, 2024, Mark Zuckerberg revealed in a letter to House Judiciary Committee Chairman Jim Jordan that the Biden-Harris administration had pressured his staff to censor certain COVID-19-related content in 2021. He expressed regret over the collaboration, which resulted in the removal of satirical and humorous content, as well as sensitive information such as the Hunter Biden computer scandal.

During that time, Facebook removed more than 20 million pieces of content labeled as COVID-19 misinformation, according to a report by Time magazine. The sweeping moderation effort drew criticism for removing posts not only for alleged violations of the company’s policies, but also for potentially censoring legitimate speech.

These revelations fall under the First Amendment, constituting yet another deviation in a context already marked by repeated controversies. They raise profound questions about respect for freedom of expression in the United States, thus opening the door to massive civil lawsuits. The consequences could amount to colossal fines, potentially reaching billions, even tens of billions of dollars.

Furthermore, it is becoming clear that the Justice Department will likely scrutinize all of Mark Zuckerberg’s statements before the Senate, where he has appeared on at least five occasions, to verify that he has not lied in front of the national assembly. If inconsistencies or false statements are discovered, this could result in charges of perjury, a serious crime in the United States. Such charges could lead to criminal charges against Zuckerberg himself, which could result in prison sentences, in addition to hefty fines for the company. These legal implications could not only further tarnish Meta’s image, but also cause a major crisis of confidence among investors and the public.

Confrontations and criticism in the Senate

In January 2023, during a Senate hearing, Zuckerberg was harshly criticized by Senator Marsha Blackburn for his failure to protect young users from online sexual exploitation. Senator Josh Hawley and others pushed Zuckerberg to acknowledge the role his platforms play in facilitating human trafficking and child pornography rings. Senator Lindsey Graham accused Zuckerberg of having "blood on his hands," a direct reference to child suicides linked to the use of Meta's platforms.

"Facebook Files" revealed

Testifying before the Senate Commerce Committee, former Facebook product manager Frances Haugen accused Meta of prioritizing “profit over safety” and called for a major overhaul of the company’s practices. She singled out the algorithm and its harmful impact on young Internet users. The Wall Street Journal had previously revealed that Meta had changed its algorithms to prioritize profits over user safety, a revelation from the “Facebook Files” that drew critical attention to how the company prioritizes financial interests over the well-being of its user base.

Virginia Investigation into Illegal Drug Sales

In 2023, Virginia law enforcement officials initiated a criminal investigation into suspected illegal drug sales activity through Meta’s social media platforms. The investigation is aimed at determining whether Meta not only facilitated such transactions, but also profited economically from the illegal activity. The Food and Drug Administration (FDA) is also participating in the investigation, highlighting the potential public health implications as well as legal risks for Meta.

The investigation is exploring how Meta’s algorithms may have enabled or even encouraged the dissemination of advertising and transactions for unapproved or regulated drugs. In addition, authorities are examining the company’s security measures and oversight policies to determine whether they were adequate to prevent such activity or whether failures allowed these practices to continue.

The implications of a possible conviction are vast. Not only could Meta face significant fines, but the company could also be forced to overhaul its content moderation and monitoring practices. A conviction could also trigger additional regulatory actions, increasing government oversight over how social platforms handle the sale of regulated products.

FTC Antitrust Challenges

The Federal Trade Commission (FTC), under the leadership of Lina Khan, has stepped up its efforts against Meta, accusing the company of maintaining an illegal monopoly and engaging in anticompetitive behavior, including through its acquisitions of WhatsApp and Instagram. A lawsuit is pending, which could force Meta to divest those entities. The FTC has also opened an investigation into Meta’s acquisition of the Supernatural app, underscoring the ongoing scrutiny of Meta’s business practices.

Between regulation and performance

Under Lina Khan, the Federal Trade Commission (FTC) has stepped up its efforts against Meta, accusing the company of maintaining an illegal monopoly through strategic acquisitions such as WhatsApp and Instagram. A lawsuit is underway that could force Meta to divest those entities, while an additional investigation targets its acquisition of the Supernatural app. These antitrust challenges highlight the increased scrutiny of Meta’s business practices.

Meanwhile, in October 2022, Meta experienced a dramatic stock price drop, raising concerns among investors. However, thanks to a strategic shift towards artificial intelligence, the company quickly rebounded. In 2023, Meta recorded significant revenue growth, reaching $134.9 billion, and net profit of $39.1 billion. This resilience demonstrates Meta’s ability to weather crises, whether commercial or regulatory.

Meta, a giant that resists everything

Meta, under Mark Zuckerberg, continues to face a series of unprecedented challenges that test its ability to navigate a complex regulatory and ethical landscape. However, nothing seems to have lasting impact on the company, which remains the 7th largest company in the world by market value to this day.

The lawsuits related to Zuckerberg's latest revelations in his letter to Jim Jordan are expected to cost Meta billions, a drop in the bucket for the company. First Amendment violations are typically handled in civil courts and are not subject to criminal law unless the action that violates the First Amendment is also a criminal act under other laws.

Facebook is currently embroiled in several lawsuits related to the alleged negative impacts of its platforms on the mental health of adolescents. These lawsuits allege that the designs of Meta’s platforms, particularly Instagram, have contributed to mental health problems in young people, including suicidal thoughts. While these lawsuits are serious and raise important questions about the responsibility of social media platforms for the well-being of users, they are being pursued under civil, not criminal, law. This means that the litigation is primarily seeking damages or injunctions to change Meta’s practices, rather than criminal penalties. Again, these will be fines that the company has likely already set aside.

On the antitrust side, even if a trial does take place, Meta's possible conviction is uncertain. The competition authority's main thesis is that the acquisitions of WhatsApp and Instagram deprived users of potential innovations that could have seen the light of day if the group were not so dominant in the social networking sector. But since these acquisitions, other networks - TikTok in particular - have experienced growing success, which weakens the FTC's argument.

In short, Mark Zuckerberg has an army of lawyers capable of prolonging these proceedings for several years, and Meta has a war chest sufficient to envisage possible convictions, including fines imposed by civil courts. Zuckerberg's latest confession was probably negotiated in advance, granting him at least some guarantees.

However, history shows that most powerful companies manage to weather major legal storms. Pfizer, the pharmaceutical giant, is probably the best example. Sentenced to record fines on several occasions, the American company has always recovered without being significantly affected by its convictions. It continues to maintain good relations with the Food and Drug Administration (FDA).

In 2009, the company was hit with a record $2.3 billion fine for illegally promoting four drugs. In 2004, Pfizer settled price-gouging allegations for $430 million over the drug Neurontin. More recently, in 2012, it was fined $55 million for unapproved promotion of Protonix. Despite these penalties

Despite these sanctions, the pharmaceutical giant has consistently come through and continues to thrive. Despite record fines and past scandals, Pfizer has maintained a strong relationship with the Food and Drug Administration (FDA), continuing to win approval for its new drugs and playing a key role in the pharmaceutical industry.

In this perspective, the coordinated legal actions of several American states against Meta, which accuse the company of harming the mental health of young people, should not be enough to bring down the technology giant. Meta, despite a series of regulatory and ethical challenges, continues its ascent with a valuation of 1.3 trillion dollars.

WhatsApp continues to expand its base with over 2 billion monthly active users, asserting its strength as a global messaging platform. Instagram, with its nearly 2 billion monthly active users, remains a vital hub for social interaction and content creation. Facebook, meanwhile, remains the social media giant with over 2.9 billion monthly active users, a central pillar of global communication. Additionally, Meta is positioning itself as a leader in the race to achieve artificial intelligence. With its innovations in this space, the company is well-positioned to continue to grow and expand its influence, even in the face of increased regulatory scrutiny.

For now, nothing seems to be able to shake the Menlo Park giant, and the end of Meta does not seem to be coming any time soon, much to the relief of its supporters and the dismay of its detractors. Mark Zuckerberg has perfectly understood the workings of the system, as have his lawyers. Yet history is there to remind us that even John D. Rockefeller, once the most powerful man in the world with his oil empire, saw his monopoly falter under the pressure of antitrust laws. Nothing is ever set in stone, especially in the field of technology, where lightning-fast innovation and regulatory upheaval can change the game overnight.

Sources :

1. “Facebook Removed Over 20 Million Posts for COVID-19 Misinformation” (The Verge)

   
   

2. “The Facebook Files: A Wall Street Journal Investigation” (The Wall Street Journal)

1. “FTC Sues Facebook to Unwind Acquisitions of WhatsApp and Instagram” (Reuters)

1. “Meta’s Stock Plummets: The Cost of Betting Big on the Metaverse” (Financial Times)