Meta settles closely watched social media addiction lawsuit for $18B

Meta Platforms Inc. will pay $18 billion to settle a lawsuit that accused it of making children addicted to Facebook and Instagram.

The case was brought in 2023 by 29 attorneys general. Meta signed today’s settlement with the attorneys general of 48 states plus the District of Columbia, Puerto Rico, American Samoa and the Northern Mariana Islands.

Complying with the agreement will require the company to not only pay compensation but also upgrade its age detection features. Additionally, Meta will significantly expand the child safety guardrails embedded in Facebook and Instagram.

The company has agreed to block users under 18 from accessing its social networks between midnight and 6 a.m. Furthermore, it will roll out a cumulative usage limit of two hours per day across Facebook and Instagram. If Meta detects that a minor has multiple accounts, the accounts will all count towards a single daily usage cap.