Social Media: Meta and US states reach billion-dollar settlement in youth protection lawsuit

Meta, the parent company of Facebook and Instagram, has agreed to pay up to $18 billion to settle claims from 29 US states that it designed its platforms to addict children. According to Handelsblatt, the settlement also requires Meta to make significant changes to its youth protection measures. The company denied any wrongdoing in agreeing to the settlement.

The settlement is one of the largest consumer protection settlements in US history. As reported by CNA - Business, it includes a payment of up to $18 billion over a decade and limits on how teenagers use Facebook and Instagram. Meta's shares rose about 1% following the announcement, suggesting investors welcomed the outcome.

Politico EU reports that the settlement sets the stage for groundbreaking changes to protections for children across social media. Meta has called on other companies, including TikTok and Google-owned YouTube, to adopt similar safety measures. The changes could force substantial changes to platforms used daily by most Americans.

Brief written by urgent.news from Handelsblatt, CNA - Business, Joy Business, Politico EU, BBC Business — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.