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Meta agrees $18 bln settlement with 52 U.S. state attorneys general

Largest U.S. state-led tech settlement covers teen user protections and $12.7 bln in payments over a decade. Remaining $5.3 bln is contingent on rivals matching terms.

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Helena Vásquez · Business Desk · 28 Aug 2026 · 11:51 · 1 min read
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Meta agrees $18 bln settlement with 52 U.S. state attorneys general

Meta Platforms Inc. has reached a $18 billion settlement with 52 U.S. state attorneys general, resolving claims related to the company’s handling of teen users on Facebook and Instagram.

The agreement, which spans 10 years, requires Meta to implement sweeping restrictions on under-18 usage, including a two-hour daily time limit across both platforms. Parental permission will be mandatory to disable the limit, though this would reduce to one hour per app if competitors adopt similar standards. Access will be blocked between midnight and 6 a.m., with notifications muted during school hours from 8 a.m. to 3 p.m. Additional safeguards include prompts after 15 minutes of continuous use, non-algorithmic feed options, disabled autoplay, and hidden like counts by default.

Meta will also block cosmetic surgery and extreme makeup filters. The company expects to record approximately $10 billion in legal expenses in the third quarter of 2026. Of the total settlement, roughly $12.7 billion—about 70%—will be paid directly to participating states over the decade. The remaining $5.3 billion is contingent on YouTube and TikTok adopting comparable measures and making matching payments.

The settlement framework includes an independent research foundation, to which Meta will provide consented user data to study teen well-being. An independent auditor will review compliance annually for five years. Meta’s Chief Legal Officer C.J. Mahoney noted that the framework "will only work if all our peers join us."

The majority of the terms must remain in place for 10 years, reflecting the long-term scope of the agreement.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Helena Vásquez
Business Desk

Helena covers corporate news for listed and private companies across Europe, from strategy shifts to leadership changes, with an eye for what a story signals about the broader market.

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