Meta Platforms has reached a settlement with various states in the United States, agreeing to significant modifications on Facebook and Instagram, and a payout of up to $18 billion US. The settlement, stemming from claims that the company engineered the apps to foster addiction among children, deceived consumers about safety, and improperly gathered personal data from children on its platforms, was finalized during a California federal trial.
While Meta, based in California, denied any wrongdoing, the company agreed to enforce restrictions on teenagers’ daily use of Facebook and Instagram for the next ten years, limiting it to two hours a day and prohibiting usage between midnight and 6 a.m. without parental consent. These restrictions may be tightened if other social media companies adopt similar guidelines. Additionally, Meta will strengthen measures to prevent children from accessing age-restricted content but is not required to abandon personalized recommendations or targeted advertising.
The settlement includes payments totaling over $16.7 billion US to 47 U.S. states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands, with Texas separately settling for over $1 billion US. Besides addressing the addiction-related claims, the settlement also resolves privacy lawsuits related to the ​Cambridge Analytica scandal brought by California, Illinois, New Mexico, and Washington, D.C., who will collectively receive $459.3 million US.
The settlement, pending approval from U.S. District Judge Yvonne Gonzalez Rogers, signifies a significant step in the legal battle, with Meta and other social media companies facing numerous lawsuits alleging harm to young users. The outcome is expected to impact the operations of Meta, Snapchat, YouTube, and TikTok as they navigate the legal challenges.
