Meta has agreed to a sweeping settlement worth up to $18 billion to resolve a federal case alleging that social media platforms harm teenagers. The agreement also requires significant changes to Facebook and other Meta services used by minors.
However, a federal judge must still approve the settlement before it becomes final.
Meta Faces Billions in Potential Payments
The agreement involves a broad coalition of state attorneys general across the United States. New Mexico is excluded after winning a similar case earlier this year, while Florida did not join the settlement.
Under the deal, Meta could pay a maximum of $18 billion. However, that total depends partly on whether TikTok and YouTube participate under similar terms.
If they do not, Meta would pay 70% of the maximum amount. TikTok and YouTube would need to contribute a combined $5.3 billion and accept the same service changes. Meta would then pay its remaining 30%.
The states would receive settlement payments annually over ten years. Moreover, each state’s share would vary according to its population.
New Protections Target Teenage Users
The agreement goes beyond financial penalties. Meta has agreed to introduce several controls designed to reduce young users’ exposure to its platforms.
For example, underage users would receive a default daily limit of one hour. Meta would also introduce a “night mode” that blocks access between midnight and 6 a.m.
Additionally, a “school mode” would disable push notifications between 8 a.m. and 3 p.m. These measures aim to limit distractions during school hours and overnight use.
Legal Pressure on Meta Is Far From Over
The settlement would end an ongoing trial involving attorneys general from California, Colorado, Kentucky, and New Jersey. They accused Meta of violating state consumer protection laws and the Children’s Online Privacy Protection Act.
The states had collectively sought about $200 billion in damages. Therefore, even the maximum $18 billion settlement represents less than 10% of that figure.
Still, Meta’s legal challenges will continue. School districts and individuals have separate lawsuits alleging harm from social media design and functionality.
As a result, the proposed settlement could close one major chapter while leaving the wider debate over youth safety and social media far from settled.
