What Meta bought with its $18 billion settlement

In a historic legal settlement, social media giant Meta agreed to pay up to $18 billion to 18 US states. The decision was reached after a trial accusing Facebook and Instagram of addicting young users. The trial concluded swiftly, with Meta avoiding testifying. This settlement is the largest ever paid by a Big Tech company to states.

The money will be paid in ten yearly installments of roughly $1.17 billion each, equivalent to what Meta loses in the Reality Labs division every 24 days. Notably, Meta's quarterly profit in the last quarter was $16 billion and over $60 billion in 2025. This settlement does not mark the end of Meta's responsibility. It plans to change its apps for teenagers significantly, including defaulting teen accounts to a two-hour daily limit, allowing chronological feeds to be the default, blocking features overnight, and silencing notifications during school hours. However, parents can override these limits.

Interestingly, Meta turned its own punishment into leverage against competitors YouTube and TikTok. The remaining 30% of the settlement, over $5 billion, will only be paid if these platforms adopt similar restrictions and make comparable payments to the states. It's a controversial move as one state, Florida, refused the settlement and intends to continue fighting Meta in court.

Critics argue that spending a month's cash flow to erase a decade's worth of harm to youth is unfair, asserting that corporations like Meta should face more substantial penalties for breaking the law.