Meta agreed to pay up to $17.1 billion to 47 states, the District of Columbia, and some U.S. territories to settle a three-year-old lawsuit. While the financial cost likely won't sting Mark Zuckerberg much, the settlement's restrictions on children's access to Instagram and Facebook could permanently alter how Meta interacts with its youngest users.

The deal includes a two-hour daily time limit for minors, with new parental controls and access cutoffs during school hours. Meta built a financial incentive aimed at pulling competitors into similar rules. The base settlement is $12 billion, but Meta will reduce the time limit to one hour if YouTube and TikTok agree to the same. If those companies also pay $5 billion, Meta will contribute its remaining share.

YouTube declined to comment, and TikTok did not respond. Senators Marsha Blackburn of Tennessee and Richard Blumenthal of Connecticut said safeguards should apply "to all social media companies — not just Instagram and Facebook." Meta published an open letter urging TikTok and YouTube to follow suit.

The settlement comes after years of congressional hearings and mounting lawsuits. In March, Meta and YouTube lost a $6 million personal injury case. A New Mexico judge recently ordered Meta to pay nearly $1 billion for violating consumer protection laws.