Meta Reaches Up To $18 Billion Settlement Over Allegations of Harming Children

Meta has agreed to a significant settlement, potentially reaching up to $18 billion, to resolve allegations brought forth by 29 US states. The states accused the social media giant of harming children through its platforms and deliberately designing features to encourage addictive usage.

The core of the lawsuit centered on claims that Meta was aware of the potential risks its platforms, including Facebook and Instagram, posed to young users. Despite this knowledge, the company allegedly developed features specifically intended to keep children engaged for longer periods.

Furthermore, the states accused Meta of violating the US Children's Online Privacy Protection Act by collecting data from children without parental consent. As part of the settlement, Meta has not admitted any liability.

Subject to court approval, the agreement mandates a decade of enhanced protections for teenage users. These measures include a default daily usage limit of two hours across Facebook and Instagram, restrictions on usage between midnight and 6 a.m., muted notifications during school hours, and limitations on the visibility of likes and reactions. Meta will also implement stricter controls on appearance-altering filters for minors and invest in technology to better identify users under 13 or those who have misrepresented their age.

Meta has framed the settlement as a potential blueprint for broader industry standards, suggesting that similar protections would be more effective if adopted by other major platforms. The company anticipates recording a $10 billion legal expense in the third quarter due to this agreement. Notably, approximately 30% of the total settlement amount is contingent on YouTube and TikTok implementing comparable protections and matching financial commitments.

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Protections would be more effective if other major platforms adopted similar measures.