Meta Agrees to $18 Billion Settlement, Tightens Teen Social Media Rules

Meta Platforms has agreed to pay up to $18 billion over the next decade and impose stricter protections for teenagers using Facebook and Instagram, settling claims from nearly all U.S. states that its platforms were designed to addict children.

The agreement ends a federal trial over allegations that Meta harmed young users and misled the public about platform safety. California, Colorado, Kentucky and New Jersey had been prepared to pursue nearly $200 billion in civil penalties.

Under the Meta settlement, teenagers will generally be limited to two hours per day on Facebook and Instagram. Usage will also be blocked between midnight and 6 a.m. without parental approval. Most push notifications will be disabled during school hours from 8 a.m. to 3 p.m., while Meta will strengthen protections against age-restricted content.

The restrictions could become tougher if Snapchat, TikTok and YouTube introduce comparable youth safety measures. However, Meta will still be allowed to use personalized recommendations and targeted advertising.

Meta denied wrongdoing but said ensuring teenagers have a safe experience remains a priority. Its shares climbed as much as 4.1% before closing 1.1% higher.

The company could pay about $16.7 billion to 47 states, Washington, D.C., Puerto Rico, American Samoa and the Northern Mariana Islands. California could receive $2.2 billion and New York $1.1 billion. Texas separately reached an agreement worth more than $1 billion.

The settlement guarantees approximately $12.7 billion in payments, with another $5 billion dependent on whether Snapchat, TikTok and YouTube adopt similar child-protection policies. Meta will also pay $459 million to settle state privacy claims linked to the Cambridge Analytica scandal.

U.S. District Judge Yvonne Gonzalez Rogers approved the main agreement Wednesday, calling it “a good step forward.”

The settlement could influence thousands of remaining lawsuits accusing social media companies of contributing to youth anxiety, depression and other mental health harms. Florida and New Mexico did not join the agreement and are continuing separate legal actions against Meta.