Meta Platforms has reached an agreement to pay up to $18 billion over ten years to settle lawsuits brought by nearly all U.S. states. The authorities accused the corporation of making Facebook and Instagram addictive for minors and of hiding the risks of its platforms, according to infohub.kz.
The settlement concludes a federal court case that began on August 18. California, Colorado, Kentucky, and New Jersey had planned to seek about $200 billion in civil penalties.
Meta did not admit wrongdoing but agreed to pay compensation to the states and to change how its platforms are used by teenagers.
“The goal of this case was to protect our children,” said Colorado Attorney General Phil Weiser.
Over the next decade, Meta must limit teenagers' use of Facebook and Instagram to two hours per day. Without parental consent, minors will also be barred from using the platforms from midnight to 6 a.m.
In addition, the company committed to disabling most push notifications during school hours (8 a.m. to 3 p.m.), strengthening protections for children from age-restricted content, improving age verification, and limiting certain features that increase teen engagement.
The restrictions could become stricter if Snapchat, TikTok, and YouTube adopt similar measures. The agreement does not require Meta to abandon personalized recommendations or targeted advertising. It also does not address content that may negatively affect teenagers' perception of their own appearance.
The company said the safety of young users remains one of its top priorities. “We want to do right by parents and teens,” Meta said.
The bulk of the settlement provides for payments of up to $16.7 billion to 47 states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands. California could receive about $2.2 billion, and New York $1.1 billion. Texas reached a separate agreement for more than $1 billion.
Meta has guaranteed payment of about $12.7 billion. An additional $5 billion will be paid if Snap, TikTok, and YouTube also implement similar child protection measures. In some states, the funds will be directed to children's mental health support programs. In others, the money will go into general budgets.
Meta will also pay $459 million to settle claims related to the Cambridge Analytica scandal. The British consulting firm obtained personal data of millions of Facebook users without permission.