Meta Platforms reaches $18B settlement over social media addiction, urges peers "to join us"

Meta has agreed to a $18 billion settlement with U.S. states to address claims that its social media platforms, Facebook and Instagram, were designed to keep young users engaged. This settlement brings an end to one of the most high-profile cases questioning whether social media companies are causing harm to children. The agreement includes both financial payments and significant changes to Meta's services aimed at teenage users.

The lawsuit, which was brought forth during a federal trial in California, alleged that Meta had intentionally targeted young users, misled the public about the risks to children, and violated state consumer protection laws. It also accused Meta of breaching the Children's Online Privacy Protection Act (COPPA) by collecting, storing, and utilizing personal data from children under 13 without proper parental consent.

The trial included claims from consumer protection agencies in California, Colorado, Kentucky, and New Jersey, as well as COPPA claims from 29 other states.

In addition to the federal trial, the settlement extends to attorneys general from numerous additional states, the District of Columbia, and U.S. territories. As part of this broader agreement, Meta has committed to implementing a range of teen safeguards, which include a default two-hour daily time limit on Facebook and Instagram, a nighttime block from midnight to 6 a.m., enhanced age verification measures, and the disabling of push notifications during school hours (from 8 a.m. to 3 p.m.) for teenage users.

Meta has also agreed to guarantee payment of 70% of the settlement, totaling approximately $12.7 billion, over the course of a decade. The remaining portion of the settlement, around $5 billion, will only be paid if rival platforms Snap, TikTok, and YouTube, which are owned by Alphabet, adopt similar safety measures. These measures would involve implementing tighter daily time limits of one hour per app, more extensive nighttime blocks from 10 p.m. to 7 a.m., and larger platforms agreeing to comparable financial payments to the states.

The implementation of these changes will occur in phases following the settlement's enactment. Within four months, Meta will introduce a non-personalized feed. Within six months, the company will roll out broader compliance measures, and by one year after the settlement, Meta must meet significant age-assurance requirements. The states that are expected to receive the largest share of the settlement include California, Colorado, Kentucky, and New Jersey.