Meta has agreed to a major settlement with US states that will see the technology giant pay up to $16.7 billion and introduce stricter protections for teenagers using Facebook and Instagram. The agreement brings to an end a landmark trial in California involving allegations that Meta deliberately designed its platforms to keep young users engaged, failed to adequately disclose safety risks and illegally collected information from children under the age of 13.
The case was brought by 29 US states and was among the most significant legal challenges Meta has faced over the impact of its social media platforms on children and teenagers.
New Restrictions for Teen Users
Under the agreement, Meta will introduce several measures aimed at limiting teenagers’ use of its platforms. Teen accounts will automatically be blocked from accessing Facebook and Instagram between midnight and 6 a.m. local time.
Their accounts will also have a default limit of two hours of cumulative daily use across Meta’s platforms. However, messaging and long-form video viewing will not count toward the limit. Meta’s chief legal officer, C.J. Mahoney, described the agreement as a potential model for the wider technology industry and urged companies including TikTok and YouTube to adopt similar measures.
If competing platforms introduce comparable safeguards, the proposed restrictions could become even tighter, including a 10 p.m. to 7 a.m. overnight lockout and a 60-minute daily limit per app, subject to a two-hour overall cap.
Settlement Could Reach $18 Billion
Although the agreement with the 29 states is valued at up to $16.7 billion, a separate settlement with Texas pushes the combined payout to approximately $18 billion. California is expected to receive between $1.5 billion and $2.1 billion over 10 years, while New York could receive as much as $1.13 billion. An independent auditor will monitor Meta’s compliance with the new requirements for a decade, with the company covering the cost.
Meta Denies Wrongdoing
The settlement does not constitute an admission of liability or wrongdoing by Meta, which has continued to deny the allegations. California Attorney General Rob Bonta welcomed the agreement, saying it would bring significant changes and stronger protections for children using Meta’s platforms. The measures will apply only to teenagers in the states covered by the agreement and will not extend internationally.
The settlement comes as Meta continues to face thousands of individual claims and lawsuits from school districts over alleged harm linked to its social media platforms.
The trial had entered its second week when the agreement was reached. Instagram head Adam Mosseri testified before the settlement, acknowledging that he had promoted certain teen safety features without revealing that early testing showed low adoption.
Other witnesses alleged that Meta had been aware of weaknesses in some of its safety tools. The company had warned that losing the case in court could have exposed it to more than $1 trillion in potential penalties. The agreement still requires final court approval before it can take effect.
