Meta agrees to pay $18B to settle US lawsuits over youth addiction

Meta Platforms will pay nearly $18 billion to resolve lawsuits brought by almost every US state accusing the company of deliberately designing Instagram and Facebook to hook children and teenagers. The settlement, announced on August 26, lands as one of the biggest legal payouts by a single American company in history. What’s in the deal The core payment falls between $16.68 billion and $17.1 billion, covering 47 states, Washington D.C., and US territories. Texas negotiated its own separate agreement worth approximately $1 billion, bringing the combined total to around $18 billion when contingencies are factored in. But the money is only half the story. Meta must also implement a series of default restrictions on users aged 13 to 17, including a two-hour daily cap on app usage, a nightly blackout window from midnight to 6 a.m., and modified notification delivery during school hours. Enhanced parental controls and age verification measures are also part of the package. About 70% of the settlement funds will flow to state-run youth online safety initiatives over the next decade. An additional $5.3 billion is tied to commitments from other platforms, including YouTube and TikTok. Meta...