Meta has agreed to pay up to
$18bn (around R287bn) to settle a landmark lawsuit brought by 47 US states, the District of Columbia and several US territories over claims that Facebook and Instagram contributed to teen social media addiction and harmed young users' mental health. The agreement is one of the largest settlements ever reached by a technology company.
The lawsuit, first filed in 2023, alleged that Meta deliberately designed its platforms to keep children and teenagers engaged for longer periods, while misleading the public about the risks. It also accused the company of violating child privacy laws by collecting data from users under 13 without parental consent.
As part of the settlement, Meta will introduce a range of new safety features for teenage users on Facebook and Instagram, including:
A default two-hour daily usage limit for users under 18.
Overnight access restrictions between midnight and 6 am.
Notifications paused during school hours.
Stronger age verification and expanded parental controls.
The payout will be spread over 10 years. Around $12.7bn is guaranteed, while the remaining $5bn will only be paid if rival platforms such as TikTok, YouTube and Snapchat adopt similar youth safety measures.
Meta has denied any wrongdoing, saying it has already invested heavily in tools to protect young people online. The settlement still requires court approval before the new measures are rolled out.
The agreement is widely seen as a turning point in the growing global push to hold social media companies more accountable for the impact their platforms have on children and teenagers.