Metaverse

Meta projects Instagram to dominate US ad income

Instagram is poised to account for more than half of Meta Platforms’ US advertising revenue by 2025, according to research firm Emarketer. This anticipated growth is largely attributed to the platform’s enhanced monetisation strategies, particularly its focus on short-form video content such as Reels, which competes directly with TikTok and YouTube Shorts.

The increasing engagement with Reels has attracted marketers seeking to capitalise on the popularity of short videos, leading to a significant rise in ad placements. In 2024, Instagram’s ad revenue was primarily derived from its Feed (53.7%) and Stories (24.6%). However, the combined revenue share from Explore, Reels, and potentially Threads is projected to grow to 9.6% in 2025.

Jasmine Enberg, principal analyst at Emarketer, notes that users now spend nearly two-thirds of their Instagram time watching videos, underscoring the platform’s shift towards video-centric content. Additionally, if a TikTok ban were to be enforced in the US, Reels could become a prominent alternative for advertisers, further boosting Instagram’s market share.

Meta data breach leads to huge EU fine

Meta has been fined €251 million by the European Union’s privacy regulator over a 2018 security breach that affected 29 million users worldwide. The breach involved the ‘View As’ feature, which cyber attackers exploited to access sensitive personal data such as names, contact details, and even information about users’ children.

The Irish Data Protection Commission, Meta’s lead EU regulator, highlighted the severity of the violation, which exposed users to potential misuse of their private information. Meta resolved the issue shortly after its discovery and notified affected users and authorities. Of the 29 million accounts compromised, approximately 3 million belonged to users in the EU and European Economic Area.

This latest fine brings Meta’s total penalties under the EU’s General Data Protection Regulation to nearly €3 billion. A Meta spokesperson stated that the company plans to appeal the decision and emphasised the measures it has implemented to strengthen user data protection. This case underscores the ongoing regulatory scrutiny faced by major technology firms in Europe.

Meta resolves Australian privacy dispute over Cambridge Analytica scandal

Meta Platforms, the parent company of Facebook, has settled a major privacy lawsuit in Australia with a record A$50 million payment. This settlement concludes years of legal proceedings over allegations that personal data of 311,127 Australian Facebook users was improperly exposed and risked being shared with consulting firm Cambridge Analytica. The firm was infamous for using such data for political profiling, including work on the Brexit campaign and Donald Trump’s election.

Australia’s privacy watchdog initiated the case in 2020 after uncovering that Facebook’s personality quiz app, This is Your Digital Life, was linked to the broader Cambridge Analytica scandal first revealed in 2018. The Australian Information Commissioner Elizabeth Tydd described the settlement as the largest of its kind in the nation, addressing significant privacy concerns.

Meta stated the agreement was reached on a “no admission” basis, marking an end to the legal battle. The case had already secured a significant victory for Australian regulators when the high court declined Meta’s appeal in 2023, forcing the company into mediation. This outcome highlights Australia’s growing resolve in holding global tech firms accountable for user data protection.

Ethiopian content moderators claim neglect by Meta

Former moderators for Facebook’s parent company, Meta, have accused the tech giant of disregarding threats from Ethiopian rebels after their removal of inflammatory content. According to court documents filed in Kenya, members of the Oromo Liberation Army (OLA) targeted moderators reviewing Facebook posts, threatening dire consequences unless the posts were reinstated. Contractors hired by Meta allegedly dismissed these concerns, claiming the threats were fabricated, before later offering limited support, such as moving one exposed moderator to a safehouse.

The dispute stems from a lawsuit by 185 former moderators against Meta and two contractors, Sama and Majorel, alleging wrongful termination and blacklisting after they attempted to unionise. Moderators focusing on Ethiopia faced particularly acute risks, receiving threats that detailed their names and addresses, yet their complaints were reportedly met with inaction or suspicion. One moderator, fearing for his life, described living in constant terror of visiting family in Ethiopia.

The case has broader implications for Meta’s content moderation policies, as the company relies on third-party firms worldwide to handle disturbing and often dangerous material. In a related Kenyan lawsuit, Meta stands accused of allowing violent and hateful posts to flourish on its platform, exacerbating Ethiopia’s ongoing civil strife. While Meta, Sama, and the OLA have not commented, the allegations raise serious questions about the accountability of global tech firms in safeguarding their workers and addressing hate speech.

Meta introduces tools to enhance the Metaverse

Meta has announced the release of a new AI model, Meta Motivo, designed to enhance the realism of human-like digital agents in the Metaverse. This innovation promises more lifelike movements for avatars, addressing longstanding issues with digital body control. The company believes these advancements will revolutionise character animation and create immersive experiences with highly interactive non-playable characters (NPCs).

Meta’s focus on AI and Metaverse technologies has led to record-breaking investment forecasts for 2024, with capital expenditures projected to reach up to $40 billion. The company has also embraced an open-source approach by making its AI models available for free to developers, fostering innovation across its platforms.

In addition to Meta Motivo, the company introduced the Large Concept Model (LCM), an AI system designed to reimagine language modelling by focusing on high-level concepts rather than predicting text tokens. This system processes entire sentences in multilingual and multimodal contexts, aiming to enhance reasoning capabilities. Meta also unveiled Video Seal, a tool that embeds invisible, traceable watermarks into videos, signalling its commitment to both innovation and security in digital content creation.

These releases reflect Meta’s vision of advancing AI to shape the future of digital interaction and the Metaverse, aiming to establish itself as a leader in cutting-edge virtual and augmented reality technologies.

Meta expands clean energy initiatives with major solar projects

Meta Platforms has partnered with Invenergy to purchase green energy credits from four large solar projects in the United States, supporting its goal to power operations with 100% clean energy. These projects, generating 760 megawatts—enough to power approximately 130,000 homes—will be located in Ohio, Texas, New Mexico, and Arkansas and are expected to connect to the grid between 2024 and 2027.

The deal is part of Meta‘s broader strategy to meet the energy demands of its data centres sustainably, including prior agreements with geothermal and solar initiatives. While Meta won’t directly use the power, the credits will offset its energy footprint.

Urvi Parekh, Meta’s head of global energy, stated the projects reaffirm Meta’s commitment to environmental sustainability. The move comes amid rising energy demands from the company’s expanding global operations.

Meta and Lightstorm Vision collaborate on 3D content

Meta Platforms has teamed up with James Cameron‘s Lightstorm Vision to enhance 3D entertainment production for its Meta Quest headsets. The partnership will focus on live sports, concerts, and TV series, with the Quest serving as Lightstorm’s exclusive mixed reality hardware platform.

This collaboration reaffirms Meta’s commitment to its mixed-reality initiatives, following significant investments in augmented reality and metaverse technologies. In addition, both companies will work on reducing the production costs of creating 3D content, making immersive media more accessible.

In September, Meta introduced a more affordable version of the Quest, aligning with its goal to expand its user base.

Supreme Court clears path for lawsuit against Meta

The US Supreme Court has decided to allow a class-action lawsuit against Meta, Facebook’s parent company, to move forward. The case stems from the Cambridge Analytica scandal, where the political consulting firm accessed personal data from 87M Facebook users and used it for voter targeting in the 2016 US presidential election. Meta had sought to block the lawsuit, but the court dismissed its appeal.

Investors claim Meta failed to fully disclose the risks of data misuse, leading to two major drops in its stock price in 2018 when the extent of the privacy breach became public. Meta has already paid a $5.1B fine and a $725M settlement with users over related allegations.

The lawsuit is one of several legal challenges facing big tech firms. A separate case against Nvidia is under review, as investors allege the company misled them about its dependency on cryptocurrency mining.

Meta updates Messenger with new features

Meta is enhancing its Messenger app with a range of new features, including HD video calls, voice isolation, and AI-powered backgrounds. HD calls are now the default for Wi-Fi users and can also be enabled for cellular calls. Voice isolation reduces background noise during calls, improving clarity.

The app also introduces video and audio voice messages, allowing users to leave recordings when their contacts are unavailable. iOS users gain the ability to send messages and make calls through Siri, offering hands-free convenience.

Another highlight is the AI-generated backgrounds for video calls. Users can select this feature via the “effects” icon during calls, adding a creative, customisable touch to their conversations. These updates follow recent improvements, such as end-to-end encryption by default and the addition of a Meta AI chatbot in Messenger. Meta continues to evolve Messenger into a versatile communication platform, blending functionality with cutting-edge technology to enhance the user experience.

Meta launches new AI division for businesses

Meta has hired Clara Shih, previously Salesforce’s CEO of AI, to lead its newly formed Business AI group. Shih announced her move in a LinkedIn post, stating that her team aims to develop cutting-edge AI tools to help businesses on Meta platforms like Instagram, Facebook, and WhatsApp. The initiative seeks to empower businesses by making AI accessible and effective in driving growth.

The Business AI group will focus on leveraging Meta’s Llama language models to offer solutions for advertising and content creation. While specific tools have not been revealed, AI-generated ad creation is a likely feature. Meta’s strategy hinges on enhancing its platforms with AI tools, boosting ad engagement, and increasing revenue without directly charging for AI products.

Shih’s appointment comes amid intensified competition in enterprise AI. Salesforce, where Shih previously worked, has struggled to fully capitalise on the AI boom. Shih now has an opportunity to steer Meta’s efforts in reshaping how businesses interact with AI, marking a significant shift for the company’s focus on business-oriented innovations.