Mark Zuckerberg, Chief Executive Officer of Meta Platforms, arrives for a court appearance at the Los Angeles County Superior Court in downtown Los Angeles, California. EPA/CHRIS TORRES

Tech World

Meta settles US child-safety claims for up to €15.5 billion

4 minutes read

The deal resolves litigation originally filed by 29 states in 2023 and later joined by additional states and territories.

Meta has agreed to pay up to $17.1 billion (€14.7 billion) to settle claims brought by dozens of US states and territories that its Facebook and Instagram platforms harmed children.

The deal, announced on August 26, resolves litigation originally filed by 29 states in 2023 and later joined by additional states and territories. The settling coalition covers 47 states, the District of Columbia and three US territories, or 51 attorneys general in all.

It is one of the largest settlements ever secured against a technology company and ends a high-profile federal trial that had just begun in California. Proceedings opened in Oakland on August 18 and had been expected to run into early October.

The litigation began in 2023 when 29 states accused Meta of knowingly building addictive features, collecting data from under-13s without proper parental consent in breach of federal privacy rules, and misleading the public about the safety of its platforms. The privacy claims were brought under the Children’s Online Privacy Protection Act.

Additional states and territories later joined. Four states, California, Colorado, Kentucky and New Jersey, led the case at trial and had been seeking damages that could have run into hundreds of billions of dollars.

Meta denies wrongdoing, and admitted no liability under the deal.

Under the agreement the company will pay a minimum of $12.1 billion (€10.4 billion) to a broad coalition of states over 10 years, plus a separate payment of more than $1 billion (€858 million) to Texas, which was not part of the multistate case.

A further $5 billion (€4.3 billion) is conditional on TikTok and YouTube adopting similar teen-safety measures and paying the states comparable sums. Meta itself puts the headline value of the package at about $18 billion (€15.4 billion).

State attorneys general welcomed the outcome. California attorney general Rob Bonta said the settlement would “make social media less dangerous for our kids”.

Colorado attorney general Phil Weiser said the focus was on stopping night-time and school-hour notifications, encouraging breaks and limiting harmful features. He described the relief as “well beyond what any court has ordered or is likely to order”.

District of Columbia attorney general Brian Schwalb described the safety changes as a “monumental public health victory”.

Meta said it had partnered with attorneys general “to set a new industry standard” and that the measures would empower parents. Chief legal officer C.J. Mahoney published an open letter urging TikTok and YouTube to sign up.

Product changes form a central part of the settlement.

Users under 18 will face a default two-hour daily time limit across Facebook and Instagram that only a parent or guardian can lift. Mandatory pauses will interrupt continuous use after 15 minutes and again at 60 and 90 minutes.

Night-time access to feeds will be blocked by default between midnight and 6am, with notifications silenced from 10pm to 7am.

Push alerts will be switched off on weekdays between 8am and 3pm during term time. Likes and reactions on posts by minors will be hidden and cosmetic filters restricted.

Age-assurance systems and parental tools will be strengthened. An independent auditor will monitor compliance.

The reforms are expected to take effect within months, subject to court approval. The two-hour cap runs for five years, dropping to 60 minutes for 10 years if Snapchat, TikTok and YouTube adopt comparable terms.

Meta said it expected to book a charge of about $10 billion (€8.6 billion) in the current quarter.

Meta still faces separate lawsuits from school districts and individuals. Attorneys general have already signalled that the agreement provides a blueprint for action against other platforms such as TikTok and YouTube.

In Europe and elsewhere, regulators are moving in parallel.

The European Commission has issued preliminary findings under the Digital Services Act that Meta’s infinite scroll, autoplay and engagement-driven algorithms breach rules on addictive design. The findings, adopted on July 10, do not prejudge the outcome and Meta may respond in writing before any decision on non-compliance.

Were they confirmed, the company would face a fine of up to 6 per cent of global annual turnover. The Commission made a comparable finding against TikTok in February.

Australia has already banned under-16s from major platforms, while the UK and several EU member states are advancing age limits, overnight curfews and restrictions on manipulative features.

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