Meta has finalized a significant settlement with nearly all US states, agreeing to pay up to $18 billion over the next decade to resolve allegations concerning the harm its platforms have caused to children and for allegedly misleading the public about their safety. This agreement mandates stringent limitations on how teenagers use Facebook and Instagram, introducing features like a one-hour daily time limit, a nighttime block, and a "school mode" to mute notifications during specific hours. While Meta has not admitted to any wrongdoing, the settlement aims to address concerns about child well-being and potentially fund children's mental health initiatives across states. Furthermore, Meta is encouraging its industry peers, including YouTube, Snapchat, and TikTok, to adopt comparable safety measures and contribute financially to a broader, industry-wide solution to protect young users.

Meta has finalized a significant settlement with nearly all US states, agreeing to pay up to $18 billion over the next decade to resolve allegations concerning the harm its platforms have caused to children and for allegedly misleading the public about their safety. This agreement mandates stringent limitations on how teenagers use Facebook and Instagram, introducing features like a one-hour daily time limit, a nighttime block, and a "school mode" to mute notifications during specific hours. While Meta has not admitted to any wrongdoing, the settlement aims to address concerns about child well-being and potentially fund children's mental health initiatives across states. Furthermore, Meta is encouraging its industry peers, including YouTube, Snapchat, and TikTok, to adopt comparable safety measures and contribute financially to a broader, industry-wide solution to protect young users.

Meta has finalized a significant settlement with nearly all US states, agreeing to pay up to $18 billion over the next decade to resolve allegations concerning the harm its platforms have caused to children and for allegedly misleading the public about their safety. This agreement mandates stringent limitations on how teenagers use Facebook and Instagram, introducing features like a one-hour daily time limit, a nighttime block, and a "school mode" to mute notifications during specific hours. While Meta has not admitted to any wrongdoing, the settlement aims to address concerns about child well-being and potentially fund children's mental health initiatives across states. Furthermore, Meta is encouraging its industry peers, including YouTube, Snapchat, and TikTok, to adopt comparable safety measures and contribute financially to a broader, industry-wide solution to protect young users.

Meta has reached an agreement with almost all US states under which the social media giant would pay up to $18 billion over the next decade and strictly limit how teenagers use Facebook and Instagram. The settlements have ended a federal trial over allegations that Meta’s products harmed children and that the company misled the public about their safety.

Of the total amount, around $17 billion will go towards settling a lawsuit brought jointly by 29 states, including California, Colorado, Kentucky and New Jersey, in 2023. The remainder will settle claims between Meta and other states and territories. Just three states—Florida, New Mexico and Texas—are not part of the settlement.

The settlement amount, however, is a fraction of Meta’s $201 billion in revenue in 2025. The total payout represents about three to four months of profit and roughly one month of revenue for Meta.

The money would be paid out over 10 years, with states receiving at least $1.5 billion. New Jersey expects to receive at least $525 million, while Massachusetts said it was in line for at least $366 million. Virginia’s share is worth $353 million. California could receive a $2.2 billion payout, while New York could receive $1.1 billion.

Texas reached a separate settlement worth more than $1 billion.

According to media reports, some states have announced that they will deposit the funds into general accounts, while others will earmark portions of the money to address children’s mental health.

The tech giant, while agreeing to the settlement, has also sought to bring its competitors into the deal. The company said it would pay 70 per cent of the amount—about $12.7 billion—for now, while the remaining 30 per cent—about $5.3 billion—would be released only if its rivals, YouTube, Snapchat and TikTok, also implement similar safety measures and pay the same amount, split among the companies.

These companies have not yet responded to Meta’s proposal.

The safety restrictions Meta has agreed to implement include a one-hour daily time limit, a nighttime block and age-assurance measures. It will also introduce a “school mode” that mutes notifications between 8 am and 3 pm.

“Our new Time Limit commitments, Night Mode features and usage limits during school hours set the right path forward for our whole industry, but this framework will only work if all our peers join us,” C.J. Mahoney, chief legal officer at Meta, said in a statement.

He emphasised the need for an industry-wide solution, as teens tend to move fluidly across dozens of apps.

Interestingly, Meta has not admitted to any wrongdoing as part of the agreement. The company has long argued that it could not have misled consumers because “social media addiction” was not a recognised psychiatric condition.

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