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Meta Reaches $18bn Settlement Over Claims Its Platforms Harmed Children

Agreement with 52 U.S attorneys general introduces tougher restrictions on teenage access to Facebook and Instagram…..

Meta has reached an $18 billion settlement with attorneys general from 52 US states and territories over allegations that its social media platforms harmed children.

The legal action was brought by 29 US states and centres on concerns over the impact of Facebook and Instagram on young users.

Under the agreement, which still requires judicial approval, Meta will introduce a series of new measures aimed at limiting teenagers’ use of its platforms and giving parents greater control over their children’s online activity.

The company said the measures will apply automatically to users under 18 in participating US states and territories.

Among the new restrictions are tighter limits on screen time, overnight access and notifications during school hours. Teenagers will also receive new prompts designed to encourage them to take breaks from the platforms.

C.J. Mahoney, Meta’s chief legal officer, said the agreement would establish a new framework for teenage social media use.

“I’m pleased to announce that Meta has reached an agreement with a bipartisan group of state attorneys general from around the country on a new set of rules governing teens’ use of social media,” Mahoney said.

Under the new arrangement, teenagers will require parental permission to disable the imposed time limits.

Meta will also prevent teenagers from accessing its applications between midnight and 6am, while notifications will be muted by default between 8am and 3pm during school hours.

The company said users will receive a reminder after every 15 minutes of continuous use, as well as when their total daily usage reaches 60 and 90 minutes.

“Our new Time Limit commitments, Night Mode features and usage limits during school hours set the right path forward for our whole industry, but this framework will only work if all our peers join us,” Mahoney said.

Beyond the new restrictions, the settlement includes a payment of about $18 billion to be made in annual instalments over a 10-year period.

Participating states are expected to receive roughly 70 percent of the amount, or about $12.7 billion, during the decade.

The remaining $5.3 billion will be released only if TikTok and YouTube satisfy specified conditions under the agreement.

Meta said it expects to recognise about $10 billion in legal expenses in the third quarter of 2026 as a result of the settlement.

The company added that the charge was not included in the financial outlook it issued during its second-quarter earnings call.

The agreement will also create an independent social media research foundation to support studies into teenage wellbeing.

Meta said it would provide the foundation with consented user data, while an independent auditor would assess the company’s compliance with the agreement every year for five years.

Most of the settlement’s provisions are expected to remain in force for 10 years.

Meta is also calling on TikTok and YouTube to adopt the same safeguards, arguing that teenagers frequently move between different social media platforms.

Mahoney said industry-wide participation would be necessary to make the framework effective.

“Because teens move fluidly across dozens of apps, we need an industry-wide solution,” he said.

“We therefore call on our industry peers, TikTok and YouTube, to implement this new framework, right away.”

Meta said broader participation would trigger even tighter restrictions, including reducing the daily usage limit to one hour per app and extending the overnight block from 10pm to 7am.

The company said its initial five-year commitments on time limits and night mode would also be extended to 10 years if the wider framework is adopted.

Teenagers would additionally be allowed to select a non-algorithmic feed, disable autoplay and have the number of likes and reactions on posts hidden by default.

 

Opeyemi Owoseni

Opeyemi Oluwatoni Owoseni is a broadcast journalist and business reporter at TV360 Nigeria, where she presents news bulletins, produces and hosts the Money Matters program, and reports on the economy, business, and government policy. With a strong background in TV and radio production, news writing, and digital content creation, she is passionate about delivering impactful stories that inform and engage the public.

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