Meta agrees to pay $18bn settlement over claims its platforms harm children

 

Meta has agreed to an $18 billion settlement with 52 US attorneys general over claims that its platforms harmed children.

The lawsuit was instituted by 29 US states, the BBC reported.

Speaking on the agreement in a statement on Wednesday, the social media firm said the deal would lead to stricter measures to protect Facebook and Instagram users.

The measures, according to the tech company, include stricter limits on teenagers’ screen time, overnight access, school-hour notifications, and new parental controls.

While still subject to judicial approval, Meta said the measures would automatically apply to users under 18 years in “participating United States and territories”.

C.J. Mahoney, Meta’s chief legal officer, said the agreement would establish new rules for teenagers’ use of social media.

“I’m pleased to announce that Meta has reached an agreement with a bipartisan group of state attorneys general from around the country on a new set of rules governing teens’ use of social media,” Mahoney was quoted as saying.

Meta said teenagers will only be able to turn off the limit with parental permission.

The company said it will also block teens from accessing its apps between midnight and 6 am, while notifications will be muted by default from 8 am to 3 pm during school hours.

“Our new Time Limit commitments, Night Mode features and usage limits during school hours set the right path forward for our whole industry, but this framework will only work if all our peers join us,” Mahoney said.

According to the statement, teenagers will receive prompts after every 15 minutes of continuous screen time and when their total daily usage reaches 60 and 90 minutes.

Meta also said the agreement includes a payment of approximately $18 billion, which will be distributed in annual instalments over 10 years.

Under the arrangement, participating states are expected to receive about 70 percent, or approximately $12.7 billion, of the allocated payment over the decade.

The organisation noted that the remaining $5.3 billion will be released only after TikTok and YouTube meet specified conditions.

Meta said it expects to record approximately $10 billion in legal expenses in the third quarter (Q3) of 2026 as a result of the agreement.

The company said the charge was not included in the expense range provided during its second-quarter (Q2) earnings call.

The agreement will also establish an independent social media research foundation to support research into teen wellbeing.

Meta said it would share consented user data with the foundation, while an independent auditor will review its compliance with the agreement annually for five years.

The company said most of the provisions will remain in place for 10 years.

META CALLS ON TIKTOK, YOUTUBE TO JOIN TEEN SAFETY DEAL

Meta also called on TikTok and YouTube to adopt the same measures, arguing that teenagers move between multiple social media platforms.

 

Mahoney said broader industry participation was necessary for the measures to be effective.

“Because teens move fluidly across dozens of apps, we need an industry-wide solution,” he said.

“We therefore call on our industry peers, TikTok and YouTube, to implement this new framework, right away.”

Meta said the agreement would be strengthened if TikTok and YouTube joined, noting that the daily limit would then fall to one hour per app, while the overnight block would be extended from 10 pm to 7 am.

Meta said the initial five-year commitments for its time limit and night mode measures would also be extended to 10 years.

The company said the agreement will also allow teens to choose a non-algorithmic feed, turn off autoplay and hide the number of likes and reactions on posts by default.

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