Meta has agreed to pay up to $18 billion over 10 years and impose tighter controls on teenage use of Facebook and Instagram after settling US claims that its platforms were designed to addict and harm children on 26 August.
The agreement with 52 state and territorial attorneys general brings an early end to a federal trial that began in Oakland, California, on 18 August and was expected to run for several weeks. Meta denied wrongdoing, while US District Judge Yvonne Gonzalez Rogers approved the main settlement late on Wednesday.
Under the agreement, teenagers will face a two-hour daily limit across Facebook and Instagram, with usage blocked between midnight and 6am unless parents give consent. Meta will mute most push notifications during school hours, strengthen protections against age-restricted content and introduce other safeguards for younger users.
California attorney general Rob Bonta said the settlement would “make social media less dangerous for our kids and make a world of a difference for children and their families”. He said the measures would include time limits, school-hour notification restrictions, overnight blocks and bans on plastic surgery filters.
Meta will make maximum payments of about $16.7 billion to 47 states, Washington DC, Puerto Rico, American Samoa and the Northern Mariana Islands, with California receiving up to $2.2 billion and New York about $1.1 billion. A further $459 million settlement resolves privacy claims linked to the Cambridge Analytica scandal.
Colorado attorney general Phil Weiser said the settlement provided “relief” that was “very meaningful and well beyond what any court has ordered or is likely to order”. The agreement includes about $12.7 billion in guaranteed payments, with another $5 billion dependent on whether Snapchat, TikTok and YouTube adopt similar protections.
Meta chief legal officer CJ Mahoney said an industry-wide approach was needed because teenagers use multiple social media platforms. Meta has called on TikTok, Snap and YouTube to adopt the framework, while the company does not have to remove personalised recommendations or targeted advertising.
The settlement could increase pressure on social media companies facing thousands of similar lawsuits from families, schools and government bodies. South Korea’s Korea Media and Communications Commission said on 27 August that measures targeting features such as algorithmic recommendations, likes and push notifications “would ideally be applied to youth users worldwide”.
Meta’s shares rose as much as 4.1 per cent on Wednesday before closing 1.1 per cent higher. Florida and New Mexico did not join the settlement, with Florida continuing litigation and New Mexico pursuing separate claims over child safety.
