An article summarized by TechCrunch:
Meta has agreed to pay up to $18 billion to settle lawsuits brought by 29 U.S. states over allegations that Facebook and Instagram were deliberately designed to be addictive to children and that Meta collected data from minors without proper parental consent. The settlement does not mean Meta admits wrongdoing, but it allows the company to avoid potentially lengthy jury trials. Meta will pay the settlement over 10 years, with about $10 billion expected to be recorded as a legal expense this year.
As part of the agreement, Meta would introduce new protections for teenagers for at least 10 years. These include a default two-hour daily limit across Facebook and Instagram, overnight and school-hour restrictions, hiding like and reaction counts, stronger parental controls, restrictions on certain extreme beauty filters and improved age-verification technology. Meta also says it will strengthen protections against adults interacting with minors and respond more quickly to reports of harmful content, while keeping direct messages outside the time limits so teens can communicate with friends and family.
Meta is also using the settlement to pressure TikTok and YouTube to adopt similar restrictions. About 30% of the potential $18 billion settlement, roughly $5.3 billion, will only be paid if YouTube and TikTok implement measures such as one-hour daily limits, Night Mode and age-assurance technology, with the platforms also agreeing to pay a matching amount. Meta argues that teens move between multiple social-media platforms, so protections need to be industry-wide. Despite the massive financial cost, Meta’s stock rose following news of the settlement.
