Meta has agreed to pay up to $18 billion over the next decade and introduce new restrictions for teenage users under a sweeping settlement with nearly all US states over allegations that its platforms contributed to social media addiction among children and teenagers.
The settlement follows lawsuits accusing Meta of designing Facebook and Instagram in ways that encouraged young users to become dependent on the platforms while misleading the public about their safety. The states also alleged that excessive social media use contributed to mental health problems among children.
Under the agreement, teenagers’ use of Facebook and Instagram will be limited to two hours a day. Access will also be blocked between midnight and 6am when parental permission has not been provided.
Meta will further limit most push notifications to teenagers during school hours, from 8am to 3pm, and strengthen measures aimed at preventing children from accessing age-restricted content.
The settlement could provide up to $16.7 billion to 47 states, Washington DC and several US territories. California is expected to receive about $2.2 billion, while New York could receive around $1.1 billion.
Of the total settlement, approximately $12.7 billion is guaranteed, while another $5 billion depends on whether Snapchat, TikTok and YouTube introduce comparable child-safety measures.
The agreement does not require Meta to abandon personalised content recommendations or targeted advertising. It also does not impose a direct ban on certain content that the company’s own researchers have previously identified as potentially harmful to young users.
Meta did not admit wrongdoing or legal violations as part of the settlement. The company has maintained that providing teenagers with a safe and useful experience remains a priority.
A federal judge, Yvonne Gonzalez Rogers, approved the central settlement and described it as an important step towards protecting children.
The agreement, however, does not end all legal challenges facing Meta. Thousands of lawsuits brought by individuals, schools, cities and other government bodies remain pending, while New Mexico and Florida have chosen to continue separate legal action against the company.
The settlement marks one of the biggest legal and financial confrontations yet between US authorities and a major social media company over the impact of online platforms on children.
