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Meta has agreed to pay up to $16.68 billion to settle a major US legal case over allegations that Facebook and Instagram contributed to harm to children and teenagers, including damage to their mental and physical wellbeing.
The settlement, involving 52 US state and territorial attorneys general as well as the District of Columbia, is one of the largest financial agreements involving a social media company and child safety.
Under the deal, Meta will introduce new restrictions for younger users, including limits on daily usage, blocked access during certain school hours and overnight controls. The company will also be required to strengthen parental controls and introduce more robust systems for verifying the ages of users.
The case centred on allegations that Meta deliberately designed its platforms to attract and retain young users while failing to adequately address the effects of prolonged social media use on children.
The states alleged that Facebook and Instagram were used to draw young people into their services and keep them engaged despite the potential consequences for their mental and physical health. The legal action also accused Meta of violating federal and state laws concerning children's privacy.
Meta has denied wrongdoing and did not admit liability as part of the settlement.
The company said the agreement involved a payment of approximately $18 billion, to be distributed in annual instalments over 10 years. Court documents put the maximum settlement amount at $16.68 billion.
District of Columbia Attorney General Brian Schwalb described the agreement as a major public health victory and said the new safeguards would significantly change the way young people use Facebook and Instagram.
Among the measures are restrictions on children's access during school hours, stronger tools for parents to control their children's accounts and additional age-verification requirements designed to prevent underage users from bypassing protections.
Meta said it had reached the agreement with attorneys general from across the US as part of efforts to give parents greater control and provide additional protections for teenagers.
The company also argued that similar measures should apply across the social media industry. Meta's chief legal officer, CJ Mahoney, called on TikTok and YouTube to adopt comparable restrictions, including time limits, night-time controls and limits on usage during school hours.
The two platforms have been contacted for comment.
The settlement comes as US authorities continue to examine how social media companies design their services for children and whether features intended to maximise engagement can contribute to excessive use and negative effects on young people's mental health.
