Meta to Pay Up to $17 Billion in Landmark Social Media Addiction Settlement
Meta agrees to pay up to $17 billion over 10 years to settle claims that Facebook and Instagram were designed to be addictive and harmful to young users.
Meta, the parent company of Facebook and Instagram, has agreed to a proposed settlement of up to $17 billion to resolve a landmark lawsuit brought by a coalition of U.S. states over allegations of social media addiction.
The settlement, announced on Wednesday, would see the company pay the amount to states over a 10-year period. California, one of the lead plaintiffs in the case, is expected to receive between $1.5 billion and $2.1 billion if the deal receives court approval, according to California Attorney General Rob Bonta.
The agreement involves 47 states, the District of Columbia, Puerto Rico, American Samoa, and the Northern Mariana Islands. The plaintiffs had accused Meta of designing its platforms with addictive features, knowingly exposing young users to serious mental health harms, and misleading the public about the safety of its services.
California was among the states that filed suit against Meta in 2023. The trial had begun on August 18 in the U.S. District Court for the Northern District of California.
Beyond the monetary component, the settlement includes injunctive measures aimed at protecting children. These include default daily time limits on social media use, a block on overnight access that can only be lifted by a parent, enhanced parental supervision tools, and robust age assurance measures to identify users under 18 and children under 13 on the platforms. An independent auditor will also be appointed to oversee compliance with these terms.
The settlement remains subject to final court approval.