Meta Platforms has agreed to pay up to $18 billion over the next decade and introduce tighter restrictions on teenagers’ use of Facebook and Instagram under a settlement with nearly all US states.
The agreement resolves claims that Meta designed its platforms to encourage addictive use among children and misled the public about potential risks to young users.
Under the settlement, teenagers will be limited to two hours of Facebook and Instagram use each day, while access between midnight and 6 a.m. will be blocked unless parents give permission.
Meta will also reduce most push notifications to teenage users between 8 a.m. and 3 p.m. and strengthen safeguards designed to prevent children from accessing age-restricted content.
The restrictions could become stricter if Snapchat, TikTok and YouTube introduce similar measures.
Colorado Attorney General Phil Weiser described the agreement as a significant step towards protecting children, saying the measures went beyond what courts were likely to order.
Meta has denied wrongdoing but said protecting teenagers and providing them with a safer experience on its platforms was a priority.
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The company will make maximum payments of about $16.7 billion to 47 states, Washington, D.C., Puerto Rico, American Samoa and the Northern Mariana Islands. California is expected to receive about $2.2 billion, while New York could receive $1.1 billion. Texas reached a separate settlement worth more than $1 billion.
About $12.7 billion of the settlement is guaranteed, while a further $5 billion will depend on whether Snap, TikTok and YouTube adopt comparable child-safety measures.
The agreement also requires Meta to pay $459 million to resolve state privacy claims linked to the Cambridge Analytica scandal, involving the unauthorised collection of personal data from millions of Facebook users.
US District Judge Yvonne Gonzalez Rogers approved the main settlement on Wednesday after overseeing a trial that began on August 18. She described the agreement as a positive step towards improving protections for young users.
The settlement comes as Meta and other social media companies face thousands of lawsuits alleging that their platforms contribute to problems affecting children and teenagers, including anxiety, depression and other mental health concerns.
However, the agreement does not require Meta to remove personalised recommendations or targeted advertising from its platforms.
New Mexico and Florida were not part of the settlement. New Mexico has pursued separate litigation against Meta, while Florida’s attorney general said the state would continue with its case.
The agreement is expected to influence wider efforts by governments and regulators to strengthen protections for children online and limit the potentially harmful effects of social media use.
