Meta agrees to payments of up to $18 billion under US teen safety settlement

NEW DELHI: Meta has agreed to payments of up to approximately USD 18 billion under a proposed settlement with a bipartisan group of US attorneys general over concerns around the impact of Facebook and Instagram on children and teenagers, the company said on Wednesday.

Meta said about 70 per cent of the allocated payment, or approximately USD 12.7 billion, will be distributed to participating states and jurisdictions in annual instalments over a 10-year period. The remaining 30 per cent, or around USD 5.3 billion, is conditional and would be released only after specific requirements involving rival platforms YouTube and TikTok are met.

“The agreement includes a payment of approximately $18 billion, which can be used to fund youth online safety initiatives, among other state priorities,” Meta said in a statement.

According to the company, the conditional portion would become payable if YouTube and TikTok implement a one-hour daily usage limit, nighttime restrictions and age-assurance measures for teenagers, and each platform becomes subject to specified monetary obligations.

Meta has agreed to pay up to $17.1 billion in a landmark settlement with US states over allegations that Facebook and Instagram harmed young users and misled consumers about their safety.

The deal includes imposing tighter usage limits and expanding protections for young users. pic.twitter.com/QH9qiW5Rbg

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Meta also said it expects to record a legal expense of approximately USD 10 billion in the third quarter of 2026 in connection with the agreement. The charge was not included in the expense range provided during its second-quarter earnings call, while the company’s other guidance ranges remain unchanged.

The proposed agreement, which is pending judicial approval, has been joined by a bipartisan group of 52 attorneys general across US states, territories and the District of Columbia, according to Meta. As part of the settlement, users under 18 on Facebook and Instagram in participating jurisdictions will face a default combined daily usage limit of two hours, which can only be turned off with parental permission.

Meta will also introduce a default block on major parts of its apps between midnight and 6 am for teenagers, mute most notifications during school hours and give teenagers the option to use a non-personalised feed.

The company said it will strengthen its age-assurance systems to identify users aged between 13 and 17 and detect accounts that may belong to children under 13. It will also expand parental controls and maintain restrictions on potentially harmful or age-inappropriate content.

Meta Chief Legal Officer C J Mahoney said the company wants other major social media platforms to adopt similar safeguards. “Our new Time Limit commitments, Night Mode features and usage limits during school hours set the right path forward for our whole industry, but this framework will only work if all our peers join us,” Mahoney said.

The agreement follows litigation by US attorneys general alleging that Meta’s platforms encouraged excessive use among children and teenagers and failed to adequately protect young users. Meta has denied the allegations and liability. Most of the settlement terms are expected to remain in place for 10 years, while an independent auditor will review Meta’s compliance annually for five years. (ANI)