Key facts
- Meta agreed to a settlement of up to $18 billion with four states.
- The settlement aims to address allegations that Facebook and Instagram were designed to addict children.
- New rules for teen accounts include a default two-hour daily usage limit and blocking features during school hours.
- A significant portion of the settlement payment is conditional on competitors like YouTube and TikTok adopting similar measures.
- Florida has opted out of the settlement and will pursue its case separately.
Meta has agreed to a landmark settlement of up to $18 billion to resolve allegations that its social media platforms, Facebook and Instagram, were designed to addict children. The agreement, reached just eight days into a trial where four states were seeking approximately $200 billion, will see Meta make guaranteed annual payments of roughly $1.17 billion over a decade.
As part of the settlement, Meta will implement new features for teenage users, including defaulting accounts to a two-hour daily usage limit, offering chronological feeds as an option, blocking features overnight, and silencing notifications during school hours. However, the effectiveness of these measures is questioned, with provisions allowing parents to override them and excluding messaging and videos over 22 minutes from the time cap.
Furthermore, Meta has leveraged the settlement by making approximately 30% of the payment, over $5 billion, conditional on competitors like YouTube and TikTok adopting similar restrictions and making comparable payments. Meta has publicly called for these platforms to join them in supporting teens.
Despite the settlement, Florida has refused to participate, with Attorney General James Uthmeier stating that the proposed payment is an insult and that corporations must incur real costs for breaking the law. The state plans to continue its legal battle against Meta.