Meta settles in for $17B in landmark social media case

Meta has reached a $16.7 billion settlement with 29 US states over alleged harmful practices on its platforms for teenagers. The agreement, filed in federal court, resolves claims that Meta knowingly designed its apps to addict young users, misled the public about risks, and unlawfully collected data from children under 13. The landmark case, among the most extensive of its kind, could have exposed Meta to over $1 trillion in penalties if lost in court.

California Attorney General Rob Bonta hailed the outcome as "real change, real transparency, and real enforceable protections for children." Key provisions include an automatic nighttime block locking teens out of Facebook and Instagram between midnight and 6:00 am, a default daily usage cap of two hours across Meta's apps, and stricter restrictions on messaging or video viewing.

The settlement requires court approval but does not constitute an admission of liability or wrongdoing by Meta, which maintains its innocence. Meta's chief legal officer, C.J. Mahoney, called for industry-wide adoption of these safeguards, encouraging competitors like TikTok and YouTube to follow suit. Compliance will be monitored for ten years by an independent auditor chosen jointly by Meta and the states, funded by the company.

The settlement spans ten annual installments, with California receiving the largest share of $1.5 billion to $2.1 billion. Instagram's head, Adam Mosseri, admitted earlier to promoting safety tools without disclosing low adoption rates from earlier testing. Witnesses testified that Meta knew the tools were ineffective and even designed to fail, as Mark Zuckerberg, Meta's founder and CEO, was expected to testify.