Meta agrees to pay $18 billion to settle US lawsuits over children's social media addiction

Meta Platforms has agreed to pay up to $18 billion over the next decade and impose strict limits on teenage usage of Facebook and Instagram, as part of a deal with virtually all U.S. states to settle claims that the social media platforms were designed to addict children. This agreement ends a federal trial over allegations that Meta's products harmed children and misled the public about safety concerns.

Four states - California, Colorado, Kentucky and New Jersey - were expected to seek nearly $200 billion in civil penalties, although Meta will not undergo a fundamental overhaul as part of the settlement. The accord requires Meta to limit teens' daily usage to two hours and blocks usage from midnight to 6 a.m., unless parental consent is given.

Push notifications will be disabled during school hours and measures will be enhanced to prevent children from accessing age-restricted content. While the settlement does not require Meta to abandon personalized recommendations or targeted advertising, it does call for the company to pay $459 million to resolve privacy claims related to the Cambridge Analytica scandal.

Meta denies any wrongdoing in agreeing to the settlement, stating that the payout represents a small fraction of the company's profit and revenue.