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Meta Settles Youth Addiction Claims for $18bn

Financial Times Companies •
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Meta settled claims that it addicted and endangered children on Instagram by agreeing to pay up to $18bn to 48 states and Washington DC. The company avoided putting CEO Mark Zuckerberg on the stand. Penalties include default daily limits and night-time blocks for teenagers. $5bn of the total and the tightest restrictions—a one-hour daily limit—will only apply if states strike similar deals with TikTok and YouTube.

State attorneys-general aim to shame the wider social media industry into accepting nationwide curbs on youth use. Meta, which previously lost a trial in New Mexico and owes nearly $1bn, seeks a broader deal to avoid being the sole company labeled a public nuisance. Polling shows teens use Instagram one hour daily, versus 1.5–2 hours for rivals.

Democrat Phil Weiser of Colorado said the settlement could set an industry standard, while Republican Chris Carr of Georgia warned Meta shouldn’t be the last. James Tierney, a former Maine AG, called it successful governance that will spread to other industries.

Critics argue state AGs shouldn’t set national internet policy. Eric Goldman of Santa Clara University said there’s no science backing two-hour limits and that such rules haven’t been tested in public process.