Meta has reached a landmark settlement with dozens of US states, agreeing to pay more than $16 billion to end a lawsuit accusing the company of fuelling social media addiction among minors.
The parent company of Facebook and Instagram has also agreed to make significant changes to the way its products are designed for younger users, according to a court filing submitted on Wednesday. The deal still requires approval from a federal judge in Oakland, California.
The announcement came a week after the start of the high-profile trial. It follows two similar cases in which Meta had already been found liable, in Santa Fe, New Mexico, and Los Angeles, California.
The coalition of states accused Meta of misleading the public about the effects of its social media platforms on children. It also alleged that the company had breached a federal law governing minors’ data.
The states had sought penalties of up to $200 billion.
Many other legal cases are still under way in the United States. They have been brought by young users who accuse Meta of causing social media addiction and worsening psychological and behavioural problems.
California Attorney General Rob Bonta welcomed the agreement, saying it would make social media less dangerous for children. He said Meta had accepted “massive changes” to its system for protecting younger users.
Under the settlement, Meta will introduce a default “night mode” that blocks access to its social media platforms between midnight and 06:00 a.m.
