Meta Platforms has agreed to significant modifications of Facebook and Instagram, along with a payment of up to $18 billion US to settle allegations made by multiple states in the United States. The claims stated that the company deliberately designed the apps to foster addiction among children, provided misleading information about their safety, and improperly gathered personal data from children on its platforms.
The settlement, reached during a high-profile California federal trial, saw Meta deny any wrongdoing. Colorado Attorney General Phil Weiser emphasized the importance of protecting children in a statement, acknowledging the meaningful relief obtained in the settlement, surpassing court orders’ expectations.
As part of the settlement, Meta will enforce restrictions on teenagers’ daily use of Facebook and Instagram, limiting it to two hours per day and blocking usage between midnight and 6 a.m. without parental consent. The company will also enhance safeguards to prevent children from accessing age-restricted content.
The total settlement payment, which amounts to around three to four months of profit for Meta, includes over $16.7 billion US distributed to various U.S. states and territories. Notably, Texas reached a separate settlement exceeding $1 billion US.
The settlement also addresses lawsuits related to privacy claims stemming from the Cambridge Analytica scandal, with California, Illinois, New Mexico, and Washington, D.C., receiving $459.3 million US to resolve their cases.
U.S. District Judge Yvonne Gonzalez Rogers is expected to approve the main settlement, excluding Texas, following a positive assessment during a recent hearing. The trial’s claims were part of a broader litigation wave alleging that Meta and other social media companies contributed to a nationwide youth mental health crisis.
The settlement marks a significant step in addressing concerns over social media platforms’ impact on children and teenagers, with ongoing legal battles against Meta and other tech giants pending in both federal and state courts.