Meta will be happy with its $18bn US settlement – but the costs of child online safety will keep rising for big tech | Chris Stokel-Walker
This week’s settlement without liability was pragmatic, but it doesn’t change the inevitability of further lawsuits around the world Not many people would count paying $18bn they didn’t expect to when they woke up that morning as a victory. Yet for Meta, the owners of Facebook and Instagram, the agreement with 52 US attorneys general to settle claims that it designed its products to be addictive…
Meta's $18 billion settlement in the United States without admitting liability may seem like a victory, but it does not eliminate the likelihood of further lawsuits worldwide. The payment, which will be spread over a decade, does not necessarily represent a monetary gain for the company, given that it earned approximately $60 billion in profit last year.
The agreement with 52 US attorneys general stems from claims that Meta designed its products to be addictive for children, and misled the public about safety measures. Despite Meta denying any wrongdoing, the settlement is seen as a pragmatic approach to address the issue. However, in the long run, the costs of ensuring child online safety may continue to increase for big tech companies.
One significant consequence of the settlement is the potential need to overhaul some of the mechanisms that Meta has developed over two decades to retain users on its platforms.
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