Zuckerberg’s Meta Agrees to Pay $18 Billion and Place Strict Limits on Teenage Users in Lawsuit Settlement
Meta has agreed to pay approximately $18 billion and implement new safety measures to protect teenage users on Instagram as part of a settlement approved by courts, pending court approval. The deal aims to address concerns raised by 29 state attorneys general who accused Meta of designing addictive features and misleading the public about platform safety, contributing to a teen mental health crisis. Key measures include setting a default two-hour daily usage cap on instagram and Facebook for teens, with parental approval required for changes; activating “Night Mode” from midnight to 6 a.m.; muting notifications during school hours; turning off autoplay, hiding likes and reactions, making teen accounts private, and offering a non-algorithmic feed. Meta will also enhance age verification tools to prevent children under 13 from accessing the platforms. The settlement does not admit wrongdoing, but Meta’s compliance will be reviewed by an independent auditor for five years. The effectiveness of these changes depends on enforcement and whether platforms like TikTok and YouTube adopt similar rules; or else, teens might simply switch to other apps. Additionally, meta resolved related privacy claims tied to the Cambridge Analytica scandal. The money from the settlement will be paid over ten years, with the first $12.7 billion allocated upfront, contingent on industry-wide adoption of similar teen protection measures.
Meta agreed Wednesday to pay approximately $18 billion and impose new default limits on teenage users of and Instagram.
The deal would end a high-profile trial in which state attorneys general from 29 different states accused the company of designing its platforms to keep young people scrolling.
It still requires court approval.
If a judge signs off, teens in participating states would face a default two-hour daily cap across and Instagram combined, according to Meta’s own announcement.
Parents would have to approve any change to that cap.
The company also agreed to a default “Night Mode” that blocks the apps from midnight to 6 a.m.
Notifications would be muted during school hours, from 8 a.m. to 3 p.m., except for direct messages and security alerts.
Other default settings include turning autoplay off, hiding likes and reactions, making teen accounts private, and offering a non-algorithmic feed.
Meta said it will strengthen age-assurance tools meant to keep children under 13 off the platforms and to identify users ages 13 to 17.
The settlement does not include an admission of wrongdoing. Meta “denies the allegations against it and that it has any liability,” according to a court filing cited by NBC News.
The states alleged Meta built addictive features, misled the public about safety, and helped fuel a teen mental-health crisis.
California Attorney General Rob Bonta, who helped lead the case, said the agreement “will make social media less dangerous for our kids,” according to a statement from his office.
Trial testimony had already begun in federal court in California. Instagram chief Adam Mosseri was on the stand this week when the parties announced the deal.
The money would be paid over 10 years. Meta said participating states would receive about $12.7 billion up front in that structure, with the rest tied to whether YouTube and TikTok adopt similar teen limits and matching payments.
That last point is the real test.
A two-hour cap on Instagram means far less if a teenager simply switches to TikTok for the rest of the night.
Meta Chief Legal Officer C.J. Mahoney said the framework “will only work if all our peers join us” and called on TikTok and YouTube to implement the same rules.
Reuters reported the company also resolved related privacy claims from some states tied to the older Cambridge Analytica matter as part of the broader package.
If other companies follow Meta’s lead, the entire industry’s teen product could change. If they do not, Meta’s new rules become a leaky dam.
An independent auditor would review Meta’s compliance for five years under the proposed terms.
The features would apply on Instagram and pending the court’s decision.
Whether this becomes a genuine standard or a press-release settlement will depend on enforcement and on whether TikTok and YouTube move next.
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