Meta agrees $18bn settlement with US states over teen safety

Meta has signed a settlement worth roughly $18 billion with 29 US states, Washington, DC and Texas, ending a lawsuit that accused the company of designing its services to addict young users, misleading the public about risks and unlawfully collecting data from children under 13.

The agreement, approved by a federal judge, obliges Meta to make extensive changes to Instagram and Facebook for teenage users in the signatory jurisdictions. It also includes a payment schedule of ten annual installments, with California slated to receive between $1.5 billion and $2.1 billion over the decade.

Key terms of the settlement

Among the non‑financial provisions, Meta will automatically block access to Facebook and Instagram for teenagers between midnight and 6 am local time. Daily usage across all Meta apps will be capped at two hours, though time spent messaging or watching long‑form video will be exempt. The limits apply only to users in the participating states; they do not extend internationally.

Compliance will be overseen for a decade by an independent auditor selected jointly by Meta and the states, with the costs borne by the company. The settlement does not constitute an admission of liability.

"Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms, and will do it within months," said California Attorney General Rob Bonta.

Adam Mosseri, head of Instagram, testified that earlier safety tools for teens had low adoption rates, a fact he did not disclose during the trial. C.J. Mahoney, Meta’s chief legal officer, urged rival platforms such as TikTok and YouTube to adopt similar safeguards, proposing an industry‑wide framework.

What comes next

While the settlement resolves the state‑level case, Meta still faces thousands of personal‑injury lawsuits and pending actions from school districts. Legal scholars, including James Grimmelmann of Cornell University, warn that the settlement may be only the first of many claims targeting the company’s handling of minors.

If competing services implement comparable limits, the overnight lockout could extend to 10 pm‑7 am and the total daily allowance could shrink to 60 minutes per app, capped at two hours overall. The settlement also sets a precedent that could encourage other states to pursue similar agreements, potentially reshaping the broader social‑media landscape.

Meta’s founder and chief executive Mark Zuckerberg did not testify, but the company’s willingness to settle suggests a strategic move to cap exposure and avoid a trial that could have exposed it to penalties exceeding $1 trillion.