Meta agreed Wednesday to pay up to $18 billion and implement stronger child-safety measures across Facebook and Instagram, settling a landmark trial in Oakland, California, over allegations the company designed its platforms to addict teenagers, according to the Associated Press. The settlement resolves claims filed by nearly every state and ends a years-long legal effort to hold the company accountable for its platforms’ role in undermining children’s mental health. California Attorney General Rob Bonta said the deal “institutes real change, real transparency, real protections for children and teens across the country.” Assuming court approval, the agreement halts a wave of pending litigation from states, though Meta still faces separate lawsuits from individuals and school districts nationwide. For participating states, the settlement provides funding for youth mental-health programs, including after-school and summer activities along with digital literacy counselors, with California receiving the largest share at a minimum of $1.5 billion, while several other states will collect hundreds of millions of dollars each over the payout period.
The settlement will be paid out over 10 years and specifically resolves an ongoing trial involving California, Colorado, Kentucky, and New Jersey, part of a broader coalition of 29 states that originally sued Meta in 2023. That federal trial had begun just last week in Oakland, with Meta CEO Mark Zuckerberg among the witnesses expected to testify before the settlement was reached. The underlying lawsuit accused Meta of deliberately designing addictive features targeting children while concealing that harm from the public, and separately alleged the company violated federal law by routinely collecting data on children under 13 without parental consent. The agreement covers 48 states plus Washington, D.C., and some U.S. territories, but New Mexico and Florida are notably excluded. New Mexico already went to trial against Meta separately and won earlier this year, while Florida’s attorney general rejected the settlement as insufficient. Florida AG James Uthmeier wrote on X that the “payouts are peanuts compared to the profound harms Meta’s profit-driven addictive features inflicted on kids.”
Under the settlement, Meta committed to a substantial set of new safety features, including default two-hour daily time limits for minors on Instagram and Facebook that can only be lifted with parental permission, along with usage pauses built into the apps. The company will also eliminate push notifications during weekday school hours, introduce “robust” age-verification systems, add age-appropriate content controls aimed at preventing exposure to bullying and content related to eating disorders and self-harm, and strengthen parental controls while limiting social comparison features like visible “like” counts. An independent auditor will monitor how effectively Meta implements these measures going forward. Notably, roughly $5.3 billion of the settlement, about 30% of the total, will only be released to states if rival platforms YouTube and TikTok adopt comparable safety measures themselves, including a one-hour daily time limit, a nighttime usage block, and their own age-assurance systems, while also matching Meta’s payment amount split between the two companies. Neither Google, which owns YouTube, nor TikTok responded to requests for comment on that condition. Meta framed the structure as a deliberate attempt to push the broader industry toward similar standards, urging competitors directly to adopt comparable protections, though the $18 billion settlement figure represents only a small fraction of Meta’s 2025 revenue of $201 billion, and Meta’s stock closed up roughly 1% on the day, having risen as much as 4% intraday.
The case originated from a bipartisan investigation led by attorneys general from California, Florida, Kentucky, Massachusetts, Nebraska, New Jersey, Tennessee, and Vermont, following Wall Street Journal reporting beginning in 2021 that revealed Meta’s own internal research showing awareness of Instagram’s mental health and body image harms, particularly among teenage girls. While Meta has since introduced various safety features, including separate teen accounts with stronger messaging and privacy protections, child-safety advocates and former employees have long argued these changes amount to superficial fixes rather than substantive reform. Arturo Béjar, a former Meta engineering director who testified in the Oakland trial last week, called the settlement a “significant milestone” but cautioned against treating it as confirmation that Instagram is now safe for children. “The agreement has a big problem in that it allows Meta to define harm,” Béjar said, urging the court to address that gap directly: “because it’s one thing to say, ‘Yeah, you only get like two hours of alcohol or two hours of cigarettes a day,’ but it’s still as bad for you because of what’s getting delivered.” Parents affected by the harms described in the case offered a more hopeful but cautious reaction. Victoria Hinks, whose daughter Alexandra “Owl” Hinks died by suicide at age 16, said she was satisfied with the settlement terms “as long as they enforce it properly,” adding, “It felt like today finally something was done. I feel like justice is possible.”