Meta agrees to pay $18 billion to settle US lawsuits over children's social media addiction

According to Business Recorder, Meta Platforms has agreed to a deal worth as much as $18 billion, spread across ten years, that also limits how teenagers use Facebook and Instagram. The agreement, reached with nearly all US states, resolves claims that the company built its social media products to addict children. Announced on Wednesday, it ends a federal trial, although four states had been expected to pursue close to $200 billion in civil penalties.

Under the terms, Meta will cap teen use of Facebook and Instagram at two hours daily and block access between midnight and 6 a.m. unless a parent consents. Most push notifications to teen users will also be switched off during school hours, from 8 a.m. to 3 p.m. Those limits could be tightened if Snapchat, TikTok and YouTube agree to similar measures, and the deal does not oblige Meta to drop personalized recommendations or targeted advertising.

Meta denied wrongdoing, and the total equals between three and four months of profit and close to one month of revenue. Judge Yvonne Gonzalez Rogers must still approve the main agreement, which excludes Texas, while New Mexico and Florida have not settled. Meta's shares rose 1.6 per cent in afternoon trading.