Meta agrees to $18bn settlement over US claims of addictive platforms, data misuse

Social media giant Meta has agreed to a massive $18 billion settlement with US states, resolving claims that it designed Facebook and Instagram to be addictive and misled consumers about their safety. The company also faced accusations of improperly collecting children's personal data.

As part of the agreement, Meta will introduce significant changes to its platforms, including daily usage limits, restricted nighttime access for minors, and enhanced parental controls. These measures will automatically apply to users under 18 in participating US states and territories. The settlement brings an end to a trial in California that covered claims from multiple states regarding violations of consumer protection and online privacy laws, especially concerning children's data.

Meta has denied any wrongdoing in connection with the settlement. The $18 billion payment, to be disbursed over 10 years, is intended to fund youth online safety initiatives and other state priorities. The company's financial position is robust, with significant revenue and income reported in the second quarter of the year, making the settlement amount manageable despite the potential for much higher penalties if the cases had gone to trial.

The terms of the settlement also include conditions tied to the implementation of similar measures by platforms like YouTube and TikTok, and require these platforms to match a portion of Meta's payment. These developments highlight ongoing scrutiny of social media platforms' impact on young users and the evolving landscape of online safety regulations.

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can be used to fund youth online safety initiatives, among other state priorities