Meta agrees to pay $18 billion to settle US teen addiction lawsuits
Meta will pay up to $18 billion over the next decade and strictly limit how teenagers use Facebook and Instagram under an agreement with nearly all US states to resolve claims it designed those social media platforms to addict children. The settlements announced on Wednesday end a federal trial over allegations Meta's products harmed children and the company misled the public about their safety.
Meta Platforms has reached a historic settlement with multiple states, ending a contentious federal lawsuit over claims that its platforms exacerbated youth mental health issues. The social media behemoth agreed to pay up to $18 billion (approximately GH¢201.5 billion) and overhaul core features of Facebook and Instagram. This settlement, one of the largest ever imposed on a tech company, represents a significant victory for state attorneys general who accused Meta of prioritizing user engagement over safety.
Financially, the agreement includes an initial payment of about $12 billion, with the possibility of a final payout of up to $18 billion contingent on participation from other major social media platforms. If Snap, TikTok, and YouTube also settle and implement changes, the total compensation could reach the upper limit. The bulk of the funds will be allocated to bolster youth online safety initiatives and other state priorities.
At the heart of the litigation were allegations that Meta deliberately designed its products to be addictive to minors, potentially violating federal privacy and consumer protection laws. While the company denied liability and claimed to have implemented robust safety measures, plaintiffs argued that Meta knowingly exposed children to harm.
The settlement forces immediate changes that will restrict teenagers' usage of Facebook and Instagram, including daily usage caps, nighttime usage blocks, and algorithmic feed modifications.
Meta must implement daily limits and nighttime usage blocks, as well as enhance age assurance measures to protect teenagers from accessing harmful content. Teen accounts will default to a private setting with limits on cumulative use and will require parental permission to disable. Additionally, the platform will hide likes on teen posts and block extreme makeup filters. Users will also have the option to switch to an algorithm-free feed and disable autoplay videos.
This landmark agreement not only addresses a critical public health issue but also sets a precedent for industry-wide safety standards. State leaders celebrated the agreement as a pivotal step toward protecting young users online, while Meta emphasized the need for similar measures from its competitors. As this case signifies a growing trend of regulatory pressure on social media giants, the success of these changes will hinge on rigorous enforcement and broader industry cooperation.
Written by urgent.news from GBC Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.