Meta has agreed to pay up to $18 billion over a period of 10 years to settle a major lawsuit filed by nearly every US states. Under the proposed legal settlement, it has also agreed to add stronger child-safety measures to Facebook and Instagram to end a trial over teen social media addiction.
Meta was accused of designing its platforms in a way that encouraged children and teenagers to engage for extended periods. The actions to be introduced by the company include a default 2-hour daily limit across Facebook and Instagram for users under 18. Young children will also be blocked from using both platforms between midnight and 6 am.
The tech giant has not admitted any wrongdoing or liability as part of the legal settlement. The agreement 'institutes real change, real transparency, real protections for children and teens across the country,' said California Attorney General Rob Bonta.
California, Kentucky, Colorado, and New Jersey are among the 29 states that filed claims against Meta in 2023. The deal, however, cuts short the trial, which was likely to see CEO Mark Zuckerberg testify before a jury in federal court in California.
Case against Meta
The US states alleged that excessive use of the company's platforms could affect children's mental and physical health. They also accused Meta of misleading parents and users about potential risks linked to its digital services.
In August 2026, a trial started in a federal court in California. With the proposed settlement, the case will not move forward to a full trial. The agreement, however, requires final approval from the court.
Meta has rejected the claims, saying, 'Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta.'
'We want to get this right for parents and teens, and that's why we partnered with state attorneys general to set a new industry standard,' it added.
What will change now?
The changes will apply to users under 18 years of age, with parents having greater control.
2-hour daily limit: Facebook and Instagram platforms will have a combined 2-hour default time-limit. Removing the restriction will require permission from parents.
Overnight restrictions: Children and teenagers will be unable to use Facebook or Instagram between 12 am and 6 am.
Notifications muted during school hours: Notifications will be muted between 8 am and 3 pm, except for safety-related alerts.
Break reminders: Teenagers will also receive regular prompts encouraging them to take breaks during prolonged periods of use.
Features that have faced scrutiny for their potential impact on teenagers' mental well-being will also be restricted. These include public like counts and some beauty filters.
Are TikTok and YouTube part of the deal?
Meta has argued that the restrictions on Instagram and Facebook cannot completely address the problem, as young people may switch to other online services. Therefore, part of the proposed settlement's additional pay is tied to YouTube and TikTok. They will also need to roll out measures, including a 1-hour daily limit for children, overnight restrictions, and age verification steps.
Will Indian users be affected?
The US settlement will not have a direct legal impact on Indian users. However, the move may put pressure on tech companies worldwide to provide protections for children and teenagers online.
The proposed settlement could trigger a debate over parental controls, screen-time restrictions, and age verification, with attention remaining on how similar measures may be implemented in the Indian market.