Meta Platforms has agreed to pay up to $16.7 billion to settle allegations brought by US states that Facebook and Instagram were deliberately designed to encourage addictive use among children and teenagers, as reported by Reuters and CBS News. The agreement, reached as a federal trial in California was underway, involves 29 states in the core case and broader payments involving additional states and territories. Meta continues to deny wrongdoing.
The settlement goes beyond the financial penalty. Meta will introduce default daily usage limits for teenagers, overnight access restrictions, enhanced parental controls and stronger age verification across Facebook and Instagram. Certain features, including cosmetic surgery filters, will also be restricted for younger users, while an independent auditor will monitor compliance.
The agreement follows allegations that Meta misled users and regulators about the risks associated with its platforms and improperly collected data from children under 13. The case was one of the most significant legal challenges yet to Meta’s business practices around young users and could have exposed the company to substantially greater damages had the trial continued.
For Meta, the settlement represents a major financial and regulatory concession while potentially establishing a new standard for how social media platforms manage teenage users. California alone could receive between $1.5 billion and $2.1 billion, with payments to participating states spread over the next decade.
