Meta agrees to pay up to $17.1bn to settle social media case
The deal has been reached during a California federal court trial over claims brought by 29 states.
Meta, the social media giant, has agreed to a $16.68 billion settlement in a US court case concerning child safety on Facebook and Instagram. The settlement obliges Meta to implement measures aimed at safeguarding teenage users, including daily usage limits and nighttime restrictions. Meta claimed it did not violate any laws and denied any wrongdoing.
US states and territories sued Meta, alleging the company used its platforms to exploit and harm the wellbeing of young people. District of Columbia Attorney General Brian Schwalb hailed the settlement as a significant public health victory. The safety features Meta is mandated to install include restricting access during school hours, enhancing parental controls, and implementing robust age verification for underage users.
The settlement includes a $18 billion payment, which will be disbursed annually over ten years for youth online safety initiatives and other state priorities. Meta's chief legal officer, CJ Mahoney, emphasized that the new time limits, night mode features, and usage limits during school hours set the right path for the entire industry, but urged other platforms like TikTok and YouTube to adopt similar safety measures.
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