Meta agrees to up to $18 billion in US teen safety settlement

Meta has reached a proposed settlement of up to approximately $18 billion with a bipartisan group of US attorneys general, addressing concerns over the impact of Facebook and Instagram on children and teenagers. The company announced the agreement on Wednesday.

The settlement allocates about 70 percent of the payment, roughly $12.7 billion, to participating states and jurisdictions, to be distributed over a decade. An additional 30 percent, around $5.3 billion, is conditional. This contingent amount will only be released if rival platforms like YouTube and TikTok implement specific usage limits, nighttime restrictions, and age-assurance measures for teenagers, and face their own monetary obligations.

Meta stated that the agreement will fund youth online safety initiatives and other state priorities. As part of the settlement, users under 18 in participating jurisdictions will face a default two-hour daily usage limit on Facebook and Instagram, which can only be overridden with parental consent. The company will also introduce a default "Night Mode" feature that blocks major app functions between midnight and 6 a.m., mute most notifications during school hours, and offer a non-personalized feed option for teenagers.

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The agreement includes a payment of approximately $18 billion, which can be used to fund youth online safety initiatives, among other state priorities.

Furthermore, Meta plans to enhance its age-assurance systems to better identify users aged 13 to 17 and detect accounts belonging to children under 13. The company will also expand parental controls and restrict potentially harmful or age-inappropriate content. Meta's Chief Legal Officer, C.J. Mahoney, emphasized the company's desire for other major social media platforms to adopt similar safeguards, stating, "Our new Time Limit commitments, Night Mode features and usage limits during school hours set the right path forward for our whole industry, but this framework will only work if all our peers join us."

The agreement follows litigation where US attorneys general alleged that Meta's platforms encouraged excessive use among young people and failed to adequately protect them. Meta has denied these allegations and liability. The company expects to record a legal expense of approximately $10 billion in the third quarter of 2026 related to this settlement. Most terms are expected to remain in effect for 10 years, subject to independent auditor review.

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Our new Time Limit commitments, Night Mode features and usage limits during school hours set the right path forward for our whole industry, but this framework will only work if all our peers join us.