Meta agrees landmark $17.1 billion settlement over alleged harm to children on social media

Meta has agreed to pay up to $17.1 billion and introduce sweeping new restrictions for young users of Facebook and Instagram following allegations that its platforms were deliberately designed to be addictive to children.

The landmark settlement resolves claims brought by US states and territories accusing the technology giant of contributing to a youth mental health crisis, misleading the public about the safety of its platforms and improperly collecting children’s personal data.

Meta has denied wrongdoing, but under the agreement it will pay at least $12.1 billion over a ten-year period, with the total potentially increasing to $17.1 billion depending on future settlements involving other major social media companies.

The agreement will also bring major changes to the way children and teenagers can use Facebook and Instagram.

Meta will introduce daily usage limits for young users, nighttime restrictions and limits on notifications during school hours. It will also strengthen age-verification measures and parental controls, while giving young people greater ability to opt out of personalised algorithmic feeds.

The settlement follows years of growing concern over the impact of social media on children’s mental health and allegations that technology companies have prioritised engagement and advertising revenue over the wellbeing of younger users.

The litigation alleged that Meta knew some features of its platforms could be harmful to children and teenagers while continuing to design products intended to maximise the amount of time users spent online.

The settlement brings an end to a major federal trial in California which had been expected to hear evidence from senior Meta executives, including chief executive Mark Zuckerberg.

It represents one of the largest consumer protection settlements in US history and could have implications well beyond Meta, with TikTok, YouTube and other social media companies facing continuing legal scrutiny over the design of platforms used by children.

For the health and care sector, the case also marks a significant development in the growing international debate around social media, children’s mental health and the responsibility technology companies have for protecting younger users online.

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