Meta agrees to pay up to $18bn in settlement over social media harms to children

Meta Platforms has agreed to pay up to $18 billion to settle a multistate lawsuit accusing Facebook and Instagram of harming children. According to Joy Business, the social media giant will initially pay approximately $12 billion, with the total payout reaching up to $18 billion depending on the participation of industry peers.

The settlement addresses allegations that Meta's platforms fueled a youth mental health crisis, with state attorneys general accusing the tech company of prioritizing engagement over the safety of young users. As part of the agreement, Meta will overhaul key features on Facebook and Instagram, including implementing teen safeguards such as a default two-hour daily limit across both platforms, overnight blocks from midnight to 6 a.m., age-checking measures, and disabling push notifications during school hours.

The payout will be used to fund youth online safety initiatives, among other state priorities. Investing.com reports that the settlement includes consumer-protection claims by several states and allegations that Meta violated the Children's Online Privacy Protection Act. California Attorney General Rob Bonta stated that the state will receive at least $1.5 billion if the settlement is approved by the court, while other states such as New Jersey, Massachusetts, and Virginia are also expected to receive significant amounts.

Brief written by urgent.news from BusinessDay Nigeria, Joy Business, Fast Company, Investing.com, CNA - Business — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.