Meta agreed Wednesday to pay approximately $18 billion and impose new default limits on teenage users of Facebook and Instagram.
The deal would end a high-profile trial in which state attorneys general from 29 different states accused the company of designing its platforms to keep young people scrolling.
It still requires court approval.
If a judge signs off, teens in participating states would face a default two-hour daily cap across Facebook and Instagram combined, according to Meta’s own announcement.
Parents would have to approve any change to that cap.
The company also agreed to a default “Night Mode” that blocks the apps from midnight to 6 a.m.
Notifications would be muted during school hours, from 8 a.m. to 3 p.m., except for direct messages and security alerts.
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Other default settings include turning autoplay off, hiding likes and reactions, making teen accounts private, and offering a non-algorithmic feed.
Meta said it will strengthen age-assurance tools meant to keep children under 13 off the platforms and to identify users ages 13 to 17.
The settlement does not include an admission of wrongdoing. Meta “denies the allegations against it and that it has any liability,” according to a court filing cited by NBC News.
The states alleged Meta built addictive features, misled the public about safety, and helped fuel a teen mental-health crisis.
California Attorney General Rob Bonta, who helped lead the case, said the agreement “will make social media less dangerous for our kids,” according to a statement from his office.
Trial testimony had already begun in federal court in California. Instagram chief Adam Mosseri was on the stand this week when the parties announced the deal.
The money would be paid over 10 years. Meta said participating states would receive about $12.7 billion up front in that structure, with the rest tied to whether YouTube and TikTok adopt similar teen limits and matching payments.
That last point is the real test.
A two-hour cap on Instagram means far less if a teenager simply switches to TikTok for the rest of the night.
Meta Chief Legal Officer C.J. Mahoney said the framework “will only work if all our peers join us” and called on TikTok and YouTube to implement the same rules.
Reuters reported the company also resolved related privacy claims from some states tied to the older Cambridge Analytica matter as part of the broader package.
If other companies follow Meta’s lead, the entire industry’s teen product could change. If they do not, Meta’s new rules become a leaky dam.
An independent auditor would review Meta’s compliance for five years under the proposed terms.
The features would apply on Instagram and Facebook pending the court’s decision.
Whether this becomes a genuine standard or a press-release settlement will depend on enforcement and on whether TikTok and YouTube move next.
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