- Meta has agreed to a $16.7 billion settlement to resolve claims from 29 state attorneys general that it designed addictive platforms harming young people's mental health.
- As part of the settlement, Meta will implement daily time limits for teen users and nighttime blocks on its platforms, including Facebook and Instagram.
- The settlement will also fund state youth online safety initiatives, with California potentially receiving between $1.5 billion and $2.1 billion upon court approval.
- Meta did not admit wrongdoing in the settlement, despite previously denying that its platforms harm children.
- The settlement follows a 2023 lawsuit filed by a coalition of 29 state attorneys general, which included California, Colorado, New Jersey, and Kentucky.
- The trial began in California federal court, where states sought changes to Meta's platforms to enhance child safety.
Meta has reached a $16.7 billion settlement with a coalition of 29 state attorneys general, addressing allegations that its platforms, including Facebook and Instagram, contribute to mental health issues among youth. The settlement, announced Wednesday, mandates significant changes to the company's apps, including daily usage limits and nighttime blocks for teenage users.12
California Attorney General Rob Bonta stated, "Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of a difference for children and their families," emphasizing the transformative nature of the agreement. The settlement is designed to fund various youth online safety initiatives and enhance protections for children, with California potentially receiving between $1.5 billion and $2.1 billion pending court approval.34
Meta has long denied allegations of harm, labeling the claims as “unsubstantiated,” but the company acknowledged the need for change. “Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta,” the company stated. The settlement will be distributed over a 10-year period, with participating states receiving approximately $12.7 billion of the total amount.
The agreement comes amid ongoing litigation, with Meta's stock rising 5% in premarket trading following the announcement. The settlement aims to set a new industry standard for child safety online, as the company collaborates with state attorneys general to implement these crucial changes swiftly.
“The settlement includes $12.7 billion for participating states, with the remaining $5.3 billion contingent on YouTube and TikTok implementing similar changes. Meta will accrue a $10 billion legal expense in Q3'26, and the agreement waives appeal rights once final judgment is entered.”
CNBC
