In one of the largest legal settlements facing technology companies in the United States, Meta agreed to pay up to $18 billion and enforce a wide range of changes to Facebook and Instagram , to end lawsuits brought by U.S. states that accused the company of designing its platforms in a way that encouraged compulsive use by children and teenagers, and downplaying the risks to younger users.
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Although the figure circulating for the settlement is $18 billion, court documents indicate that the maximum amount Meta will pay is approximately $16.68 billion as part of the settlements with the states, while other figures were linked to additional components and conditions of the agreement.
The settlement is not limited to financial compensation, as it requires Meta to make extensive changes to how minors use its platforms, which makes the agreement significant beyond the monetary value to its potential impact on the future design of social media platforms.
Two hours a day and a night curfew
Among the most notable new measures is the imposition of a default usage limit of two hours per day for users under the age of 18, with the possibility of changing these settings by parents.
The measures also include disabling notifications during school hours, hiding the number of likes on teenagers' posts by default, and enhancing age verification systems using AI- based technologies and third-party tools. Much of these measures are planned for implementation in the United States over the coming years.
What did the lawsuits say?
The US states accused Meta of designing features on Facebook and Instagram to keep users, including children, on the platforms for as long as possible, taking advantage of mechanisms such as recommendations, notifications, and social interaction. The lawsuits also included accusations that the company misled the public about the safety of its platforms and, in some cases, collected data on underage children without parental consent.
The case coincided with a broader rise in the United States of legal and political pressure on social media companies over what families and civil organizations consider to be negative effects of children's use of these platforms, including problems related to mental health and compulsive behavior.
Why did Meta choose the settlement?
The trial posed a significant risk to the company, especially since some states were demanding huge compensation that could theoretically reach $1.4 trillion, as well as fundamental changes in the way Facebook and Instagram operate. The continuation of the trial could also lead to the disclosure of internal documents and testimonies from company officials.
Under the settlement, Meta avoids continuing this costly legal process, but in return accepts new restrictions on teen use. The company says it did not commit the violations it was accused of, meaning the settlement does not necessarily represent an admission of legal responsibility for all the allegations.
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