Meta has agreed to pay up to $16.7 billion to a coalition of US states and introduce sweeping new restrictions on how teenagers use Facebook and Instagram, under a proposed settlement filed in a California federal court on Wednesday.
Gatekeepers News reports that the agreement would resolve claims brought by 29 states that Meta deliberately designed its platforms to keep young users engaged, misled the public about the risks posed to children and unlawfully collected data from users under 13.
The proposed changes represent the most extensive restrictions Meta has agreed to impose on teenage users and follow years of criticism from parents, experts and policymakers over the impact of social media on children.
Concerns about Instagram and Facebook, as well as rival platforms including Snapchat and TikTok, have contributed to growing calls for age restrictions and school phone bans in the US and other countries.
The settlement does not cover thousands of personal injury claims against Meta or lawsuits filed by US school districts, which remain pending.
The case brought by the 29 states was among the most significant legal challenges facing Meta. The company had warned that losing at trial could expose it to more than $1 trillion in penalties.
“Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months,” California Attorney General Rob Bonta said in a statement.
He described the agreement as delivering “real change, real transparency, and real enforceable protections for children.”
The settlement does not constitute an admission of liability or wrongdoing by Meta, according to the filing. The company has consistently denied the allegations, and the agreement must still receive court approval before it takes effect.
New restrictions on teenage users
The settlement’s most significant provisions are not financial but involve major changes to how teenagers use Meta’s platforms.
Under the proposed agreement, Facebook and Instagram would automatically block teenage accounts between midnight and 6:00am local time.
Teenage accounts would also be subject by default to a maximum of two hours of cumulative daily use across Meta’s apps. Time spent messaging or watching long-form video would not count towards the limit.
The restrictions would become stricter if other major social media platforms adopt equivalent measures.
Meta calls for industry-wide action
Meta described the agreement as a potential framework for the wider social media industry and called on competitors to adopt similar measures.
“Because teens move fluidly across dozens of apps, we need an industry-wide solution,” C.J. Mahoney, Meta’s chief legal officer, said.
“We therefore call on our industry peers, TikTok and YouTube, to implement this new framework, right away.”
If competing platforms adopt equivalent commitments, the overnight restriction would be extended from 10pm to 7am, while the daily allowance would be reduced to 60 minutes per app, subject to a two-hour total limit.
Compliance with the agreement would be monitored for 10 years by an independent auditor selected jointly by Meta and the states. Meta would cover the cost of the monitoring.
Meta to pay up to $16.7bn
Under the proposed payment schedule, Meta would make 10 annual instalments totalling up to $16.7 billion.
California, the largest recipient, is expected to receive between $1.5 billion and $2.1 billion over the decade, while New York could receive up to $1.13 billion.
The settlement brings the trial to an end in its second week.
Instagram head Adam Mosseri testified on Tuesday and acknowledged that he had promoted newly launched teen safety tools without disclosing low adoption rates recorded during early testing several years ago.
Other witnesses testified during the trial that Meta was aware the tools were ineffective, with some describing them as “designed to fail.”
Meta founder and chief executive Mark Zuckerberg had been expected to testify in the case.
