Meta has agreed to pay up to $16.68bn to settle a lawsuit brought by more than two dozen US states over alleged failures to protect children on its platforms. The settlement, which requires court approval, resolves claims that Meta knowingly designed addictive features for young users and collected data on under-13s in violation of the US Children’s Online Privacy Protection Act. As part of the agreement, Meta will implement default daily limits and night-time blocks for teenage users, strengthen age-assurance systems, and offer enhanced parental controls. The deal does not include an admission of wrongdoing.

Meta’s chief legal officer CJ Mahoney said the framework will empower parents to manage their children’s access. The company noted that $5.3bn of the settlement is contingent on YouTube and TikTok agreeing to similar terms. Payments will be distributed annually over 10 years, with Meta expecting $10bn in legal expenses.

The case was led by attorneys general from California, Colorado, Kentucky and New Jersey, and was set before US District Judge Yvonne Gonzalez Rogers in Oakland. Meta had previously estimated potential losses at hundreds of billions of dollars. The settlement comes amid growing public and regulatory pressure on social media platforms over child safety and mental health concerns.