Meta Agrees to $18 Billion Settlement Over Teen Addiction

Meta Platforms Inc. agreed to a landmark settlement of up to $18 billion to resolve lawsuits brought by a bipartisan coalition of 47 states, the District of Columbia, and several U.S. territories. The litigation alleged that Meta designed Facebook and Instagram with addictive features—such as infinite scroll and recommendation algorithms—that harmed youth mental health and violated child privacy laws. The agreement, reached during a federal trial in Oakland, California, includes a guaranteed payment of approximately $12.1 billion over ten years, with an additional $5.3 billion contingent upon TikTok and YouTube adopting similar safety frameworks and making matching payments.

As part of the deal, Meta must implement sweeping product changes for users under 18, including a default two-hour daily time limit, a "Night Mode" block from midnight to 6 a.m., and silenced notifications during school hours. The company will also hide "like" counts by default, restrict beauty filters, and enhance age verification tools. An independent auditor will monitor compliance for a decade. Separately, Meta reached a $1 billion settlement with Texas and a $459.3 million agreement to resolve privacy claims related to the Cambridge Analytica scandal.

During the trial, Instagram head Adam Mosseri testified that the "Take a Break" feature had adoption rates as low as 1.8 percent in 2021. While many attorneys general hailed the deal as a victory for child safety, some critics and officials, including Florida Attorney General James Uthmeier, rejected the terms as "peanuts" compared to the harm caused. Meta denies any wrongdoing or liability as part of the settlement.