Meta Agrees to Landmark Child Safety Settlement: New Social Media Restrictions and Up to $18 Billion in Payments

Meta has reached a major out-of-court settlement with U.S. states, ending legal proceedings related to the protection of minors on Facebook and Instagram.

The lawsuits against the company led by Mark Zuckerberg alleged that its platforms could be addictive for young people and that Meta had not taken sufficient steps to limit potential harm.

Under the settlement, the company is expected to pay up to approximately $18 billion. Of that amount, $2.2 billion will go to California alone, with payments to be made over a 10-year period. In return, Meta will implement new rules for teenage users.

One of the changes accepted by the company is the removal of the endless stream of content known as “infinite scroll.” The use of Instagram and Facebook will also be limited to two hours per day.

Meta will also impose nighttime restrictions. The platforms will not be available from midnight to 6:00 a.m., while notifications will be disabled from 10:00 p.m. to 7:00 a.m., with the aim of preventing compulsive use and sleep problems.

Other measures affect features that psychologists have linked to negative social comparisons. These include beauty filters and the display of the number of “Likes.” The company will also improve its age-verification mechanisms and parental control tools.

As part of the settlement, Meta will initially provide $12.7 billion to fund programs aimed at improving online safety for young people.

An additional payment of $5.3 billion will be made if its two competitors, YouTube and TikTok, adopt new policies. Meta has called on the two platforms to take the same steps.

“The settlement we negotiated will enable parents to easily manage their children’s access to our platforms,” Meta Chief Legal Officer CJ Mahoney said in a statement.

“But its success depends on whether all other social media platforms follow Meta’s lead,” he added.

The parties reached the settlement during the second week of the trial in Oakland Federal Court. California, Colorado, Kentucky and New Jersey were seeking approximately $200 billion for damages they alleged Meta had caused to minors. The settlement effectively ends the trial.

The document does not include an admission of wrongdoing by Meta and still requires approval from Judge Yvonne Gonzalez Rogers.

The compensation ranks among the largest payments ever made by a technology company to U.S. states. However, Meta continues to face many other lawsuits filed by school districts and private citizens.

Last month alone, the company said it had spent $2 billion during the second quarter to resolve its legal disputes.

The case was brought by 29 states, which accused Meta of knowing that its algorithms and social networks could cause harm but failing to do enough to curb it. According to the plaintiffs, the company placed profits above the well-being of minors.

Meta has disputed these claims, repeatedly arguing that there is no scientific evidence showing that social media is addictive. In its defense, the company has also relied on a U.S. federal law that shields platforms from liability for content posted by users.

Following the announcement of the settlement, Meta shares rose by more than 4% in premarket trading.