Meta has entered into a settlement agreement to pay up to $17 billion over the next decade to resolve claims brought by a bipartisan coalition of state attorneys general. The litigation, which was consolidated in Oakland, California, alleged that Meta intentionally designed Facebook and Instagram to foster addictive behaviors in children, misled the public regarding associated risks, and improperly gathered data from users under the age of 13.

While Meta continues to deny any wrongdoing, the agreement—which still awaits approval from Judge Yvonne Gonzalez Rogers—mandates substantial changes to the architecture of its social media platforms. For users under 18 in participating states, the company has committed to several new defaults, including a two-hour daily time limit, a nightly access block between midnight and 6 a.m., and the muting of notifications during school hours. Additionally, the platforms will implement hidden like counts, restrictions on appearance-altering filters, and the option for a non-algorithmic feed.

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The settlement distinguishes itself from previous legal challenges by focusing on product design rather than user-generated content, effectively bypassing the protections typically offered by Section 230 of the Communications Decency Act. The agreement also includes provisions for an independent auditor to monitor compliance and the establishment of a research foundation to study the impact of these platforms on young people.

Financial experts note that the $17 billion figure represents a small fraction of Meta’s projected revenue over the 10-year period. A portion of the settlement funds—approximately $5.3 billion—is contingent upon competitors like YouTube and TikTok adopting similar protective measures and financial commitments. This settlement does not resolve other ongoing legal actions against Meta, including cases in Los Angeles and New Mexico that remain active.

Source: The Conversation