Meta Platforms agreed to make major changes to Facebook and Instagram and pay up to $18 billion US as part of a settlement to resolve claims brought by states across the United States that the company designed the apps to get children addicted to them, misled consumers about their safety and improperly collected the personal data of children who used its platforms.
The settlement was reached during a California federal trial that was one of the highest-profile tests yet of allegations that social media companies harmed young users.
In agreeing to settle, the California-based company denied wrongdoing.
“The focus of this case was to protect our kids,” Colorado Attorney General Phil Weiser said in a statement. “The relief we are getting in this settlement is very meaningful and well beyond what any court has ordered or is likely to order.”
Meta agreed for the next decade to restrict teenagers’ use of Facebook and Instagram to two hours a day and block all usage from midnight to 6 a.m., absent parental consent. These limits could be tightened if other social media companies adopt similar terms.
Meta will also enhance measures to prevent children from accessing age-restricted content. The settlement does not require Meta to abandon personalized recommendations or targeted advertising. It also does not address some content that Meta researchers found particularly problematic, including posts that made Instagram users uncomfortable with their body image.
Meta, which owns Instagram and Facebook, agreed to a $16.68-billion US settlement over claims brought by 29 states that it designed its social media platforms to harm children. Meta agreed to make app changes for underage users, including imposing daily usage limits and preventing access to age-restricted content
The total payout represents about three to four months of profit for the Menlo Park, Calif.-based company.
“Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta,” the company said in a blog post. “We want to get this right for parents and teens.”
The settlements include more than $16.7 billion US of payments to 47 U.S. states, Washington, D.C., Puerto Rico, American Samoa and the Northern Mariana Islands. Texas reached a separate settlement worth more than $1 billion US.
Settlement far-reaching
Wednesday’s settlement also resolves lawsuits by California, Illinois, New Mexico and Washington, D.C., over privacy claims related to the Cambridge Analytica scandal, where the consulting firm collected personal data of millions of Facebook users.
Those states will receive $459.3 million US to resolve those lawsuits.
“This is a big deal,” said James Speta, a Northwestern University law professor who specializes in telecommunications and internet policy.
“Meta and other companies were facing pressure to change business…
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