Meta Platforms agreed to pay up to $18 billion over the next decade and introduce major restrictions on how teenagers use Facebook and Instagram, settling claims that its platforms were designed to encourage addictive behaviour among children.
The agreement, announced Wednesday, ended a federal trial in Oakland, California. The lawsuit was originally filed in 2023 by a bipartisan coalition of state attorneys general and eventually involved 47 states, three territories and the District of Columbia. The claims included allegations that Meta encouraged compulsive use and illegally collected data from children under 13 in violation of the Children’s Online Privacy Protection Act (COPPA). Meta denied wrongdoing.
California Attorney General Rob Bonta said the settlement introduced “real change, real transparency, real protections.” California, Colorado, Kentucky and New Jersey had been preparing to seek nearly $200 billion in civil penalties, while Meta said potential demands could have reached $1.4 trillion.
Under the agreement, teenagers will have a default combined Facebook and Instagram limit of two hours daily. That could fall to one hour if YouTube and TikTok introduce similar restrictions. Teen access will also be blocked between midnight and 6 a.m., except for direct messages. Parents can approve changes to these limits.
Teens will receive reminders every 15 minutes during continuous use and another after one hour. Meta will restrict notifications during school hours and overnight while introducing stronger age-assurance systems, parental controls and protections against bullying, eating-disorder and self-harm content.
Likes on teenagers’ posts will be hidden by default, “extreme makeup filters” will be blocked, autoplay video disabled and teens will be able to choose a non-algorithmic feed featuring accounts they follow. An independent auditor will monitor Meta’s compliance.
Meta will pay 70 percent of the $18 billion, approximately $12.7 billion, over 10 years for state youth online-safety programs. The remaining roughly $5.3 billion is conditional on Snapchat and TikTok introducing similar protections. California could receive between $1.5 billion and $2.1 billion, while Texas will receive more than $1 billion separately. The agreement also includes $459 million related to Cambridge Analytica privacy claims.
US District Judge Yvonne Gonzalez Rogers approved the main settlement, calling it “a good step forward.” Instagram head Adam Mosseri had begun testifying, while CEO Mark Zuckerberg was expected next.
New Mexico and Florida did not join the settlement. New Mexico separately secured a $567 million judgment this month after a $375 million jury award in March, while Florida Attorney General James Uthmeier vowed to continue litigation.
