Meta Platforms Inc. agreed to pay up to $18 billion to resolve claims brought by nearly all U.S. states that Facebook and Instagram were deliberately designed to addict children, the company said on Wednesday.
The settlement, which spans a decade, includes sweeping changes to Meta’s platforms aimed at limiting minors’ exposure to harmful content. Among the provisions is a default two-hour daily time limit on Meta’s apps for users under 18, a measure intended to curb excessive use. The company denied any wrongdoing as part of the agreement.
The resolution follows a wave of legal actions targeting social media companies over their role in a perceived youth mental health crisis. Thousands of lawsuits, filed by individuals, school districts, municipalities, and state attorneys general, allege that platforms knowingly exploited addictive features that contributed to rising rates of anxiety, depression, and suicide among young users.
The settlement also coincides with broader regulatory scrutiny in other jurisdictions. Poland’s minister of digital affairs has called for a €250 million ($291 million) fine against Meta, citing concerns over scams, false advertising, and the promotion of illegal applications. Meanwhile, Australia’s recent ban on social media for children under 16 has faced enforcement challenges, with studies showing 80% of minors still active on platforms months after the rule took effect.
Australia’s communications minister, Anika Wells, criticized Meta and other platforms for failing to implement adequate safeguards despite having the tools to protect young users. She noted that more than 20 countries have since joined Australia’s initiative to set minimum age requirements for social media access.
In the Philippines, Secretary Henry Aguda of the Department of Information and Communications Technology said the settlement would bolster his ongoing negotiations with Meta. Aguda is scheduled to meet with company representatives in Singapore to address issues including online sexual abuse of children, financial scams targeting Filipinos, and the grooming of minors on digital platforms.
Legal representatives involved in the U.S. case, including Mark Lanier, emphasized that families have long sought accountability for platforms designed to maximize engagement at the expense of children’s well-being. Craig Allsopp, head of class actions at Australian law firm Shine Lawyers, said his firm is examining whether similar claims could be pursued in Australia, where families may have grounds for compensation related to platform design and promotion.
The agreement reflects growing global pressure on Meta and other social media companies to address concerns about youth safety and platform accountability.
