The United States: Meta Platforms has agreed to pay up to $18 billion over the next decade and impose new restrictions on teenage use of Facebook and Instagram under settlements with nearly all US states over allegations that the company designed its platforms to addict children.
The agreements, announced Wednesday, bring an end to a federal trial in which states accused Meta of harming children through its social media products and misleading the public about their safety. The settlement could also influence thousands of other lawsuits against social media companies over alleged harms to young users.
Under the agreement, Meta will restrict teenagers to two hours of Facebook and Instagram use per day and block access between midnight and 6am, unless parents provide consent. The company will also disable most push notifications for teenagers during school hours, from 8am to 3pm, and strengthen measures designed to prevent children from accessing age-restricted content.
What restrictions will Meta impose on teenage users?
The settlement introduces several changes to how Facebook and Instagram are used by teenagers, although it does not require Meta to fundamentally change its business model.
The company will continue using personalised recommendations and targeted advertising. The agreement also does not cover certain content that Meta’s own researchers had identified as potentially harmful, including material linked to concerns about users’ body image.
The restrictions could become more stringent if Snapchat, TikTok and YouTube agree to comparable protections for young users. Meta has said it hopes other major platforms will adopt similar measures.
Meta denied wrongdoing as part of the settlement, saying that providing teenagers with a safe and productive experience on its platforms is a priority.
How much will Meta pay and which states rejected the settlement?
Meta has agreed to make maximum payments of about $16.7 billion to 47 states, Washington, DC, Puerto Rico, American Samoa and the Northern Mariana Islands. The overall settlement could reach $18 billion, including payments linked to whether other social media companies adopt similar protections.
The settlement guarantees approximately $12.7 billion, with another $5 billion contingent on comparable measures by Snapchat, TikTok and YouTube. California could receive about $2.2 billion, while New York could receive approximately $1.1 billion. Texas separately reached a settlement worth more than $1 billion.
Meta will also pay $459 million to resolve state privacy claims connected to the Cambridge Analytica scandal involving the collection of personal data from millions of Facebook users without authorisation.
US District Judge Yvonne Gonzalez Rogers approved the main settlement after overseeing the federal trial, which began on August 18.
However, Florida and New Mexico did not join the settlement. Florida plans to continue its litigation against Meta, while New Mexico Attorney General Raul Torrez said the agreement failed to include some measures pursued in his state’s case.
The settlement comes as Meta continues to face thousands of lawsuits brought by individuals, school districts, municipalities and government entities alleging that social media platforms contributed to problems including anxiety, depression and suicide among young users.
Meta’s shares rose as much as 4.1% during Wednesday’s trading before closing 1.1% higher.