Mark Zuckerberg-led Meta has agreed to pay up to $18 billion to settle claims brought by US states and territories that Facebook and Instagram harmed children and teenagers.
The settlement, announced on Wednesday, also requires Meta to introduce several measures aimed at limiting teenagers’ use of its platforms and improving online safety.
The agreement involves 52 US attorneys general and covers almost the entire country. Meta said the payment will be made in annual instalments over 10 years. The company has denied wrongdoing as part of the settlement.
What is the case about?
The case began in 2023, when 29 US states sued Meta, alleging that the company designed Facebook and Instagram in ways that encouraged children and teenagers to spend more time on the platforms. The states also accused Meta of violating child privacy laws and failing to adequately protect young users. The settlement came as Meta was facing a high-profile trial in California over allegations that its platforms were addictive and harmful to young people. The states relied on millions of internal Meta documents during the trial, including company research, emails and chat messages. Meta, however, maintained that it had invested heavily in making its platforms safer for younger users, including through research, testing and new safety features.
What will change for teenagers?
As part of the settlement, Meta will introduce a default two-hour daily time limit for teenagers on Facebook and Instagram. The limit will be cumulative across both platforms and can only be turned off with parental permission.
Meta will also introduce a ‘Night Mode’ that will block teenagers from using the apps between midnight and 6 am. A ‘School Mode’ will mute most notifications between 8 am and 3 pm on school days.
Teenagers will also receive prompts after every 15 minutes of continuous use and additional reminders when their total daily use reaches 60 and 90 minutes. Other changes include hiding likes and reaction counts from teen users, blocking extreme make-up filters and allowing teenagers to choose a feed that is not driven by Meta's recommendation algorithms. Users will also have the option to turn off autoplay for videos and other content.
Why are TikTok and YouTube involved?
Meta is also asking other major platforms to introduce similar safety measures. Under the agreement, a part of the settlement amount is conditional on TikTok and YouTube introducing a one-hour daily limit, Night Mode and age-assurance measures for young users. If those conditions are met, the remaining amount of the settlement can be released. Meta has argued that child safety measures will be more effective if they are adopted across social media platforms rather than by one company alone.
What does this mean for Meta?
The settlement is significant because it goes beyond a financial payment and requires changes to how Facebook and Instagram operate for younger users.
Meta will have to maintain most of the agreed safety measures for 10 years. The company is also expected to face greater scrutiny over age verification and the way its platforms are designed for teenagers.
What about India?
The development comes at a time when Meta is also facing scrutiny in India. The Indian government summoned Meta’s global officials earlier this month after the company briefly removed a Facebook post by Prime Minister Narendra Modi.
The government has also raised concerns over child sexual abuse material (CSAM) on Instagram and deepfake content and alleged algorithmic bias on its platforms. The US settlement could add to the global debate over how social media companies should protect children and teenagers online.