Facebook and Instagram owner Meta has agreed to pay up to $18bn (£13.24bn) to settle claims brought by 29 US states that its platforms harmed children
I wasn't expecting this, our technology editor writes - while the settlement doesn't admit wrongdoing, it's clear the company suddenly decided a deal was worth doing
As part of the deal, Meta agrees to make changes to its platforms nationwide - including daily limits and night-time blocks for teenage users
Meta says the agreement builds on its "longstanding efforts to empower parents and support teens" - and calls on TikTok and YouTube to put the same measures in place
Washington DC Attorney General Brian Schwalb calls it "a monumental public health victory for young people"
California's chief attorney is expected to speak to the press in just a few moments about today's settlement with Meta.
California is one of the US states and territories that sued Meta over claims its practices harmed children.
We'll bring you the important lines from the press conference here, and you can watch live at the link above.
Tom Gerken
Technology reporter
One of the themes coming out of the settlement today is Meta calling on other companies to do their part.
While it agreed to strengthen the tech it uses to estimate whether accounts are being used by teens, the tech giant said it wanted app stores to provide it with “verified age information”.
In other words, Meta wants Apple and Google to check the age of people first, and share that information. This is nothing new.
Three years ago, I reported on Meta calling for the introduction of laws which would put the onus on the app stores, not social media companies.
Whether that pressure worked or not is unclear. But in the UK at least, Apple and Google have brought in age checks.
Image source, ReutersCalifornia Attorney General Rob Bonta says the settlement "will make social media less dangerous for our kids and make a world of a difference for children and their families".
“Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months," Bonta says.
He mentions time limits, stopping notifications during school, a block on the app during critical overnight hours, and a ban on plastic surgery filters.
"I am proud to deliver this settlement that addresses the concerns at the core of our lawsuit and institutes real change, real transparency, and real enforceable protections for children on Facebook and Instagram — right now, no more waiting," he adds.
The majority of the terms agreed as part of the settlement will remain in place for 10 years, Meta says.
But some of the most noticeable changes - the daily time limit for children and night-time restrictions - will only last for five unless "industry peers" agree to take similar steps.
We'll have more details shortly.
Zoe Kleinman
Technology and AI editor
I wasn’t expecting this.
Meta has fought hard, over multiple lawsuits spanning many months and at great expense, to maintain that it is a company committed to protecting children on its platforms.
Its social networks are a fundamental part of its business: its billions of users provide it with a goldmine of data that it can both use to sell ads, and also train its AI products.
It may appear laser-focused on AI right now but make no mistake, it still needs its social media arm to bring in the money. While today’s settlement does not admit any wrongdoing, it is clear that the company suddenly decided a deal was worth doing.
It’s been a tough few days in court, with numerous evidence presented which suggested that in the past the bosses knew harmful stuff was happening on the platforms, and did not take action.
One exec said he did not remember writing in a slide deck that sometimes Meta chose to pay fines for regulatory violations rather than make changes, or do the bare minimum in order to comply.
Meta argues that the new default limits it is now introducing to its teen accounts as part of the settlement, will only help young people if other apps adopt them too.
It has to hope that its fierce rivals will decide to collaborate, even though it hasn’t always been collegiate itself. But given the growing backlash against social networks around the world, perhaps they will have to.
Meta says it has agreed to a payment of approximately $18bn (£13.2bn) distributed in annual instalment over a 10-year period.
It says this can be used to "fund youth online safety initiatives, among other state priorities".
States that participated in the lawsuit will receive approximately 70%, about $12.7bn (£9.3bn) of the funds over the decade. The remaining 30% will be released only after two specific conditions are met, it says.
Those are if:
It also says it expects to accrue a legal expense of approximately $10bn (£7.3bn) in the third quarter of this year related to the agreement.
"The agreement is designed to drive industry-wide adoption, ensuring teens receive consistent protections across the apps they use most, like YouTube and TikTok," it says.
Tom Gerken
Tech reporter
Image source, Getty ImagesAs part of the settlement, Meta has agreed to a range of changes - but it isn’t as cut and dry as you might think.
One of the agreements was for videos to not play automatically, for example, while a new default setting will mean the things they see aren’t being tailored to the viewer.
However, in both cases, these are options teens can turn on and off - with the caveat that parents can adjust their child’s account to take control of the features.
By default, teens won’t see the number of likes and reactions on posts, which will likely require some work behind-the-scenes from Meta to make possible.
The headline features - a default two-hour daily time limit for teens, and a block from midnight to 0600 - raise the biggest questions.
Will the app stop opening? Will it display a blank screen? Will it be a text box which reads “try again later”?
Right now, the only thing we know for sure is these changes are coming.
Image source, ReutersAccording to the attorney general of California - one of the states that was suing the company - the settlement includes the following measures:
In terms of implementation, it says Meta has agreed:
The full list of what has been agreed is quite lengthy - we will have more details shortly.
Meta has just released a statement welcoming the settlement, calling it an "important step", and saying it hopes to set a new "industry standard".
"Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta. We want to get this right for parents and teens," the statement says.
The company also directly calls out TikTok and YouTube, saying the platforms should implement the same restrictions.
"We know that when teens are restricted on one app, they simply move to another," it said.
Meta also says the agreement is "building on our longstanding efforts to empower parents and support teens".
Michael Race
Business and economics reporter, New York
Meta's share price rose as the US stock exchange opened for trading on Wednesday on the news that it had agreed to settle the case with US states, which is subject to final court approval.
But while the tech firm's share price jumped 3% on the open, it reversed gains immediately with shares trading lower as investors digested the details of the deal.
Image source, Getty ImagesIn the settlement, Meta has denied the allegations against it and that it has any liability to the plaintiffs.
Meta has consistently denied allegations that it has failed teens, including claims in this case that it deliberately designed its platforms to be addictive and breached child privacy laws.
"We strongly disagree with these allegations and are confident the evidence will show our longstanding commitment to supporting young people," a company spokeswoman said in a statement.
It has often cited numerous measures to protect young people, such as parental controls, safety features and making teen accounts private by default.
But this hasn’t stopped a groundswell of legal action in the US.
Head attorneys of the US states and territories that sued Meta are speaking out now in reaction to the settlement.
Washington DC Attorney General Brian Schwalb calls it "a monumental public health victory for young people".
“Meta intentionally exploited kids for profit and then lied about it, claiming its products were safe when its own internal research confirmed the platforms were addictive and harmful,” Schwab said.
He added: "The safety features Meta is required to install will fundamentally and immediately change how young people use Instagram and Facebook."
Meta is the "first platform to come to the table" and agree to reforms, Schwalb said, but there are numerous other platforms across the tech sector.
The states that brought the lawsuits against Meta wanted a variety of changes made to its products, as they allege as things run now causes "harm" to young users.
They wanted the company to:
All of these features are central to the current user experience on Meta's platforms.
Meta has agreed to make some changes, court documents show, which we will bring you more on shortly.
Image source, ReutersMeta's settlement ends a trial that began in Oakland, California, just over a week ago, and was due to last for six weeks.
It stemmed from a lawsuit filed in 2023 by 29 US states, including California and New York, which claimed numerous violations of federal and state privacy laws for children.
That includes breaches of the federal Children's Online Privacy Protection Act - intended to protect children under 13 years old from being targeted by businesses operating online.
The states allege Meta designed Facebook and Instagram to be addictive to children and teens, with features on the apps (such as video autoplay and Instagram Stories) made to keep them on there for as long as possible.
They claim Meta makes it difficult for young people to use the platform less - through functions like frequent notifications intended to get young people back on the apps.
The states allege the company has misled consumers about the safety of the platforms for young users.
Meta is also accused of improperly collecting and using children’s personal data while they used the company’s platforms.
Meta has consistently denied such claims.
Meta, the parent company of Facebook and Instagram, has agreed to a multi-billion dollar settlement over claims brought by several US states that its platforms harmed children.
The deal, which is subject to court approval, requires Meta to introduce certain rules for teenage users, including daily limits and night-time blocks.
We'll bring you the latest details as we get them.
