Meta to Pay $18 Billion in Landmark Settlement Over Teen Social Media Addiction

Meta Platforms has agreed to a sweeping settlement with nearly all US states, paying up to $18 billion and imposing strict limits on how teenagers use Facebook and Instagram. The agreement resolves claims that the company designed its platforms to be addictive for children and misled the public about their safety.

The settlement, announced on Wednesday, ends a federal trial that began on August 18. It involves maximum payments of approximately $17.7 billion to 48 states, Washington D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands. California could receive $2.2 billion, while New York and Texas may each receive over $1 billion.

Under the terms, Meta will restrict teen usage to two hours per day and block all access between midnight and 6 a.m., unless parents consent. The company will also disable most push notifications during school hours (8 a.m. to 3 p.m.) and strengthen measures to prevent children from accessing age-restricted content. These limits could tighten further if competitors like Snapchat, TikTok, and YouTube adopt similar protections.

Meta denied any wrongdoing in the settlement. The payout represents roughly three to four months of profit for the Menlo Park-based company. In a blog post, Meta stated that ensuring a safe experience for teens is an "absolute imperative."

A separate payment of $459 million will resolve state privacy claims related to the Cambridge Analytica scandal, where a British firm collected personal data from millions of Facebook users without authorization.

US District Judge Yvonne Gonzalez Rogers, who oversaw the trial, called the settlement "a good step forward" and indicated she expects to approve it. The agreement does not include Texas or Florida, which plan to continue litigating. New Mexico's attorney general called the resolution "real progress."

Social media companies still face thousands of other lawsuits from individuals, school districts, and municipalities over similar claims of fostering addiction and contributing to a youth mental health crisis. This settlement could serve as a template for resolving those cases.