Meta to Pay Up to $18B Over Teen Social Media Use

Meta will pay up to $18B and cap teen Facebook and Instagram use at two hours daily after nearly all US states sued over child safety.

Meta will pay up to $18 billion over the next decade and impose real usage limits on teenagers using Facebook and Instagram, settling claims that the company deliberately designed its platforms to addict children. The deal ended a federal trial mid-stream, right as Instagram head Adam Mosseri had begun testifying and Mark Zuckerberg was expected to take the stand next.

The timing made sense given the huge potential penalties. Four states, California, Colorado, Kentucky, and New Jersey, were seeking up to $200 billion in damages. Before the trial, Meta said they could demand as much as $1.4 trillion. Against those figures, the $18 billion settlement looks relatively small, although it still equals about three to four months of Meta’s profits.

The most important part of the deal is what Meta agreed to change. Teenagers will be limited to two hours a day on Facebook and Instagram. Meta will also block access between midnight and 6 a.m. unless a parent gives permission, and it will turn off most push notifications during school hours.

“The focus of this case was to protect our kids,” Colorado Attorney General Phil Weiser said in a statement reported by Reuters. “The relief we are getting in this settlement is very meaningful and well beyond what any court has ordered or is likely to order.””

What the settlement leaves unchanged matters too. Meta does not have to stop using personalized recommendations or targeted ads for teenagers. It also does not have to remove specific types of content that researchers have linked to negative effects, such as posts that can make users feel worse about their bodies. A two-hour limit is still a meaningful restriction, but Meta can continue trying to maximize engagement during those two hours.

The deal also creates an interesting financial incentive. Of the roughly $16.7 billion going to 47 states, Washington D.C., Puerto Rico and other territories, about $12.7 billion is guaranteed. The remaining $5 billion depends on whether Snapchat, TikTok and YouTube introduce similar protections for teenagers. This gives Meta a financial reason to push its competitors to adopt the same rules, which is why the company reportedly plans to use newspaper ads to encourage TikTok and YouTube to follow suit.

Separately, Wednesday’s settlement also resolved lingering state privacy claims tied to the Cambridge Analytica scandal, with Meta agreeing to pay $459 million on top of everything else. That’s an old wound getting stitched up alongside a much newer one, in the same afternoon.

Not every state joined the settlement. New Mexico stayed out after winning a $567 million public nuisance ruling against Meta earlier this month, on top of a separate $375 million jury verdict. Attorney General Raul Torrez said the settlement didn’t include some changes his case had pushed for, including stronger protection against adults targeting children and a ban on sexualized AI chatbot interactions with minors. Still, he called the deal a step forward.

Florida rejected the settlement altogether. Attorney General James Uthmeier said the payouts amount to “peanuts” compared with the harm caused and said Florida would take Meta to trial instead.

Legal experts already see the settlement as a possible model for future cases. Northwestern law professor James Speta said Meta and other tech companies faced growing pressure to change anyway, from Congress, state lawmakers and the public. That makes the settlement more than a single case: it could set a standard that courts and regulators use when judging other platforms.

Thousands of similar lawsuits from individuals, school districts and municipalities are still moving through courts across the U.S. If those cases follow the same pattern, we haven’t seen the last of these headlines.

“Today, we are announcing an agreement with a bipartisan group of 52 attorneys general across US states, territories, and the District of Columbia, building on our longstanding efforts to empower parents and support teens.” reads the statement published by Meta.

“Over the years, we have consistently partnered with parents and experts — listening, learning, and building. That’s why we launched Teen Accounts in 2024, to bring automatic protections to teens, and more control for parents.”

The agreement aims to push YouTube, TikTok and other platforms to adopt similar protections for teenagers.

“While this is an important step, the fact is that teens move fluidly between dozens of apps a day. All platforms should empower parents and support teens by putting the same measures in place, because we know that when teens are restricted on one app, they simply move to another.” concludes Meta. “For meaningful progress to happen, we urge TikTok and YouTube to join us and state attorneys general in adopting this new standard, to ensure teens use social media in a healthy and responsible way.”

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Pierluigi Paganini

(SecurityAffairs – hacking, Facebook)