Meta has reached a settlement with U.S. authorities over allegations concerning the impact of Instagram and Facebook on minors. Under the agreement, the company could pay up to $16.68 billion over the next 10 years.
The case focused on the way Meta's social platforms and algorithms are designed. U.S. authorities argued that some Instagram and Facebook features encouraged teenagers to spend more time on the apps. The company also faced scrutiny over how it protects minors and handles children's data.
Meta has not admitted any wrongdoing as part of the settlement.
New restrictions for teenagers
Meta will introduce a number of changes for users under 18 in the United States.
The measures include:
- a default limit of two hours of social media use per day;
- blocking access between midnight and 6 a.m.;
- fewer notifications during the school day;
- stronger age-verification measures;
- additional parental controls;
- restrictions on certain features and types of content;
- changes to the way likes and other engagement figures are displayed.
The new measures will apply to users in the U.S.
Why Meta agreed to settle
The deal allows Meta to put the legal dispute behind it without taking the case through a lengthy court battle. The payments will be spread over several years rather than being made as a single payment.
The settlement does not fundamentally change Meta's business model. Advertising, targeting and personalized content recommendations will continue to play a central role across its platforms.
Could other platforms be affected?
The case could have consequences beyond Meta. U.S. regulators are paying increasing attention to how major social media companies operate services used by minors.
If similar requirements are introduced for TikTok, YouTube, Snapchat and other platforms, restrictions for teenage users could become a standard feature of the U.S. social media market.
The settlement still needs final court approval.
