Meta Platforms has agreed to a substantial settlement, resolving claims made by states in the United States. The settlement includes a payment of up to $18 billion US and significant changes to Facebook and Instagram. Allegations against the company include designing the apps to attract and addict children, misleading consumers about safety, and improperly collecting children’s personal data.
The settlement was reached during a high-profile California federal trial focusing on social media companies’ impact on young users. Despite agreeing to the settlement, the California-based company denied any wrongdoing. Colorado Attorney General Phil Weiser emphasized the importance of protecting children, stating that the relief obtained through the settlement surpasses what any court might have ordered.
As part of the settlement, Meta has committed to imposing restrictions on teenagers’ use of Facebook and Instagram for the next ten years. These restrictions include limiting daily usage to two hours and blocking all access from midnight to 6 a.m. without parental consent. The company will also enhance measures to prevent children from accessing age-restricted content. However, the settlement does not require Meta to discontinue personalized recommendations or targeted advertising.
The total settlement amount, approximately equivalent to three to four months of profit for Meta, includes over $16.7 billion US in payments to multiple U.S. states and territories. Notably, Texas reached a separate settlement valued at over $1 billion US. The settlement also resolves privacy-related lawsuits from various states and includes payments and revisions to address concerns over privacy violations.
U.S. District Judge Yvonne Gonzalez Rogers approved the primary settlement, excluding Texas, commending it as a positive step forward. The claims against Meta were part of a broader litigation wave alleging that social media companies contributed to a nationwide youth mental health crisis.
The settlement is a significant development in ongoing legal battles against major tech companies like Meta, Snapchat, YouTube, and TikTok, over allegations of designing platforms with addictive features for children and teens. Multiple cases are pending in federal and state courts, aiming to address the societal and individual harms caused by these platforms.
The settlement with Meta follows previous legal actions where the company faced penalties for misleading consumers and creating public nuisances. Despite these settlements, litigation against these tech giants is ongoing, with several cases awaiting trial in state courts.