Meta agrees to pay $16B to settle claims from states over child harm

Meta has agreed to pay up to $16.68 billion to resolve claims brought by US states alleging that its platforms, Facebook and Instagram, caused harm to children. The legal road that led here In New Mexico, a jury found Meta liable under the state’s Unfair Practices Act and awarded $375 million in civil penalties in March 2026. The court determined Meta had engaged in misleading practices that specifically affected young users. By early August 2026, Judge Bryan Biedscheid ordered Meta to pay an additional $567 million into an abatement fund. The total financial hit from the New Mexico case alone landed at roughly $942 million. Of that abatement fund, $420 million was earmarked specifically for treatment services over a five-year period, with the remainder directed toward prevention programs and evaluation. The judge compared the company’s operations to a polluting factory, emphasizing the societal costs of its business model. Beyond the money, the New Mexico ruling also imposed operational changes on Meta’s platforms. Users under 18 are now limited to 90 cumulative hours per month on Facebook and Instagram. Push notifications are blocked between 10 p.m. and 7 a.m. for minors, and int...