Meta has agreed to a settlement worth up to $16.7 billion with a coalition of US states over allegations that Facebook and Instagram were designed in ways that encouraged excessive use among teenagers and exposed children to harmful risks.
The agreement, filed before a federal court in California on Wednesday, brings an end to a closely watched trial in which the states accused Meta of deliberately making its platforms addictive to young users, misleading the public about potential harms and unlawfully collecting information from children under 13.
California Attorney General Rob Bonta described the agreement as a major step towards stronger protections for young users, saying Meta had committed to significant changes within a short period.
However, the settlement does not constitute an admission of wrongdoing by Meta. The company has repeatedly denied the allegations, and the agreement will still require approval from the court before it can take effect.
Meta to introduce stricter limits for teenagers
While the financial terms have attracted significant attention, the settlement’s proposed changes to how teenagers use Meta’s platforms could have a more direct impact on young users.
Under the agreement, Facebook and Instagram would introduce a default overnight restriction preventing teenagers from accessing their accounts between midnight and 6am local time.
Teen accounts would also be limited by default to two hours of cumulative use per day across Meta’s applications.
The proposed measures form part of a wider package of safeguards aimed at reducing the potential risks associated with teenagers spending extended periods on social media.
Trial featured testimony from Meta executives
The settlement comes during the second week of the trial, which has featured testimony concerning Meta’s efforts to make its platforms safer for young users.
Instagram chief Adam Mosseri appeared in court on Tuesday and acknowledged that he had promoted newly introduced safety features for teenagers without disclosing how few users had adopted some of those tools during earlier testing.
Other witnesses reportedly told the court that Meta was aware of weaknesses in some of its safety measures and questioned their effectiveness.
Meta founder and CEO Mark Zuckerberg had been expected to testify during the proceedings.
The settlement now shifts the focus to the court’s consideration of the proposed agreement and whether the measures will receive final approval.
If approved, the agreement would impose significant changes on how Facebook and Instagram are used by teenagers in the United States while ending the current legal battle brought by the states.