Meta agrees to pay up to $18 billion to settle US states' child addiction lawsuit
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Meta agreed to pay up to $18 billion to settle a lawsuit by U.S. states accusing it of designing Facebook and Instagram to addict children. The settlement requires major changes to its platforms for users under 18, including daily time limits and overnight blocking. The company did not admit wrongdoing.
Key Facts
- Meta will pay a guaranteed $12.7 billion, with up to about $5 billion more if TikTok, YouTube, and Snapchat adopt similar restrictions.
- The settlement covers 48 states, the District of Columbia, and several U.S. territories, with funds distributed over ten years.
- Under the agreement, users under 18 will be limited to two hours per day on Meta platforms, with access blocked from midnight to 6 a.m.
- Meta's 2025 revenue was $201 billion, making the maximum settlement about 9% of annual revenue.
- The lawsuit, filed in 2023, accused Meta of collecting data from children under 13 without parental consent.
Settlement Terms
Meta agreed to pay up to $18 billion to resolve claims by U.S. states that it deliberately designed Facebook and Instagram to be addictive for children. The company will pay a guaranteed $12.7 billion, with the remaining roughly $5 billion contingent on TikTok, YouTube, and Snapchat adopting similar restrictions. Funds will be distributed over ten years among 48 states, the District of Columbia, and several U.S. territories. Had Meta gone to trial and lost, the penalty could have reached $1.4 trillion, according to the report.
Platform Changes
The settlement requires Meta to overhaul Instagram and other platforms for users under 18, Vermont Attorney General Charity Clark said. Age verification will be strengthened, and daily usage will be limited to two hours for minors. Access will be blocked from midnight to 6 a.m., and notifications will be disabled from 10 p.m. to 7 a.m. and during school hours from 8 a.m. to 3 p.m. Like counts will be hidden for teens, parental controls will be enhanced, and strict limits will be placed on harmful content. An independent auditor will monitor compliance with the agreement.
Company Response
Meta did not admit wrongdoing and continues to deny the allegations, despite the settlement. The company said ensuring teens use its platforms safely and effectively is a top priority. Stavros Gadinis, a professor at UC Berkeley School of Law, said Meta executives likely wanted to avoid public hearings after Mark Zuckerberg's damaging congressional testimony.
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Meta agrees to pay up to $18 billion to settle US states' child addiction lawsuit
