Meta has reached a settlement worth $16.7 billion with state attorneys general over allegations that the social media company downplayed the mental health risks its platforms pose to children. The agreement was approved by a federal judge in California and resolves a lawsuit brought by 29 states, with California Attorney General Rob Bonta serving as a co-lead alongside officials from Colorado, New Jersey, and Kentucky.
Under the settlement terms, Meta must implement substantial modifications to Facebook and Instagram. These changes include implementing usage caps and nighttime blocking features for teenage users, strengthening age verification systems to keep younger children off the platforms, and developing enhanced parental monitoring tools. California officials emphasized that these transformations will occur within months of the settlement’s approval.
The financial arrangement involves Meta paying approximately $18 billion over a 10-year period to fund youth online safety initiatives across participating states. California stands to receive between $1.5 billion and $2.1 billion from the settlement. Additionally, the agreement stipulates that competing platforms YouTube and TikTok must implement comparable safety features and match Meta’s financial contribution for states to receive the full settlement amount.
The settlement concludes a trial that had just begun with opening arguments and represents a significant regulatory victory for state governments seeking to protect minors from potential harms associated with social media use. Texas, which was not part of the coalition, separately agreed to a $1 billion payment from Meta.
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