Meta has settled a major child safety case in the US involving Facebook and Instagram. The company has reached a settlement with 29 US states over allegations that its platforms could harm children and teenagers.
Meta could pay up to $16.7 billion as part of the settlement. Reuters put the maximum value of the settlement at $16.68 billion (£12.26 billion), while Yahoo Finance reported it as $16.7 billion. The case was brought by state attorneys general from 29 states. The legal action was led by attorneys general from states including California, Colorado, Kentucky and New Jersey.
Meta accused of harming children
The states accused Meta of designing features that kept children scrolling. They claimed Facebook and Instagram used features that were “harmful and psychologically manipulative” and were designed to keep young users spending more time on the platforms.
The states also accused Meta of failing to properly protect underage users’ privacy. The case claimed that the company violated privacy protections for children and teenagers who used its platforms.
Meta reports under question
Another major allegation involved Meta’s reports about negative experiences on its platforms. The states accused the company of publishing “profoundly misleading reports” that showed very low rates of negative experiences among users on Instagram and Facebook.
The lawsuit could have exposed Meta to a much bigger financial hit. According to The Wrap, the case could have cost the company as much as $1.4 trillion if it had continued and resulted in the maximum possible penalties.
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New rules for teen users
The settlement now requires Meta to introduce new rules for teenage users. These rules include daily limits on how long teenagers can use the platforms. BBC reported that the court judgment requires Meta to introduce these restrictions.
Meta will also have to introduce nighttime blocks for teenagers. The rules are aimed at limiting teenagers’ access to Facebook and Instagram during certain nighttime hours. The settlement does not mean Meta admitted wrongdoing. The company has denied the allegations and said it did not accept responsibility for the claims as part of the settlement.
Child safety pressure grows
The case is significant because it puts pressure on one of the world’s biggest social media companies over child safety. The settlement could also become an important example of how US states are trying to make social media companies introduce stronger protections for young users.
The settlement comes after years of growing concerns about children and social media. Regulators and lawmakers have increasingly focused on whether platforms such as Facebook and Instagram do enough to protect teenagers from harmful content, excessive screen time and privacy risks.
Meta faces new restrictions
For Meta, the settlement removes the immediate risk of a potentially far larger legal penalty. Instead, the company now faces the financial settlement and new requirements aimed at changing how teenage users access its platforms. The case is still a major setback for Meta despite the company denying wrongdoing. The settlement combines a potentially huge financial payment with new restrictions on teenage use of Facebook and Instagram.