Meta reaches settlement with US states over social media safety

Meta has agreed to a settlement reaching up to 16.68 billion dollars to resolve lawsuits brought by a coalition of US states. The litigation, centered in a California federal court, involved allegations that the company intentionally designed Facebook and Instagram to be addictive to minors, misled users regarding platform safety, and illegally harvested personal data from children without parental consent.

The settlement covers 29 states, with some reports noting potential involvement of up to 40. As part of the agreement, Meta will implement new restrictions for users under 18, including daily time limits of two hours and restricted access during nighttime hours in the participating states. The company did not admit any liability or wrongdoing as part of the deal. The agreement is currently pending final approval by a federal judge in Oakland, California.

This legal action follows a broader wave of litigation against major technology firms regarding the impact of digital services on youth mental health. Meta previously faced significant court losses in Santa Fe and Los Angeles earlier this year. Following the announcement, the company's shares saw a 4.4% increase in pre-market trading.