Meta Platforms has agreed to pay up to $18 billion over the next decade to settle claims by U.S. states that Facebook and Instagram were designed to keep young users hooked and that the company misled the public about risks to children.
The agreement, reached during a federal trial in California, also requires Meta to introduce stricter safeguards for teenage users on its platforms.
Under the settlement, Meta will impose a default two-hour daily usage limit on Facebook and Instagram for teenagers, block access between midnight and 6 a.m., and disable push notifications during school hours.
The company will also introduce stronger age-verification measures and hide likes and reactions from teenage users by default. The changes will be phased in after the settlement takes effect.
READ MORE: Instagram Tightens Child Safety Measures with New Parental Alerts
Meta has guaranteed about $12.7 billion of the settlement over 10 years, while a further $5 billion is conditional on rival platforms, including TikTok, YouTube and Snapchat, adopting comparable child-safety measures.
The case involved consumer-protection claims brought by several states, including California, Colorado, Kentucky and New Jersey, as well as privacy claims involving children under 13.
Meta denied wrongdoing in agreeing to the settlement.
James Speta, a Northwestern University law professor, described the agreement as significant, saying the restrictions would change how teenagers use Facebook and Instagram and were designed to reduce engagement.
The settlement is subject to court approval and could influence how other social media companies address concerns over children’s online safety.
Reuters
