Meta Platforms has agreed to pay approximately $18 billion over 10 years to settle a landmark lawsuit accusing Facebook and Instagram of harming children and teenagers, while introducing sweeping new restrictions on how minors use its platforms.
The agreement, announced on Wednesday, brings an early end to a federal trial involving a coalition of U.S. attorneys general. The lawsuit alleged that Meta deliberately designed its platforms to encourage addictive use among young people, misled parents and the public about safety risks and collected personal information from children without the required parental consent.
The settlement involves a broader coalition than the original 29-state lawsuit. Meta said 52 attorneys general from U.S. states, territories and the District of Columbia have joined the agreement, which remains subject to judicial approval.
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Under the deal, participating states are expected to receive about 70%, or roughly $12.7 billion, through annual payments over 10 years. The remaining $5.3 billion is conditional on YouTube and TikTok adopting comparable safeguards and making matching financial contributions.
The agreement also requires Meta to introduce significant changes to Instagram and Facebook for users under 18. These include default daily time limits, overnight restrictions, muted notifications during school hours and new parental controls. Teens will also have the option of using feeds without personalised algorithmic recommendations.
Meta’s initial daily limit will be two hours per app, with stronger restrictions possible if other major platforms adopt the same framework. If YouTube and TikTok join the initiative, the agreement provides for a one-hour daily limit and longer overnight restrictions.
The company will also restrict certain cosmetic-procedure filters for teenagers, limit social-comparison features such as public reaction counts and strengthen age-assurance measures designed to identify and remove accounts belonging to children under 13. An independent auditor will monitor Meta’s compliance and report to participating states.
The financial terms represent a major legal cost for Meta. The company said it expects to record approximately $10 billion in legal expenses in the third quarter of 2026 as a result of the agreement.
Meta has denied the allegations of wrongdoing and said it has spent years developing tools designed to protect teenagers and give parents greater control over their children’s online experiences. The company has nevertheless agreed to the new framework and is calling on TikTok and YouTube to adopt similar measures.
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The settlement comes as governments and regulators around the world intensify efforts to restrict children’s access to social media and hold technology companies accountable for potential harms to young users. The case had been closely watched because a full trial could have resulted in substantial financial penalties and forced deeper changes to Meta’s business practices.
Meta’s shares initially rose following news of the settlement, reflecting investor relief that the company had avoided the uncertainty of a potentially costly jury verdict. The stock later gave up some of those gains as investors assessed the financial cost and operational restrictions attached to the agreement.
The settlement is being described by state officials as one of the largest consumer-protection resolutions involving a technology company and could establish a new benchmark for how social-media platforms are expected to protect children online.
