Meta Platforms has agreed to modify Facebook and Instagram significantly and pay a sum of up to $18 billion US to settle claims made by various states in the U.S. The allegations suggested that the company purposely designed the apps to create addiction among children, provided misleading safety information to consumers, and improperly gathered personal data from children using their platforms.
The settlement was achieved during a federal trial in California, marking a crucial test of claims that social media companies were negatively impacting young users. While Meta, headquartered in California, denied any wrongdoing, the company agreed to implement changes for the next ten years to limit teenagers’ daily usage of Facebook and Instagram to two hours, with a complete block on usage between midnight and 6 a.m. unless parental approval is granted. These restrictions may be tightened if other social media firms adopt similar guidelines.
Furthermore, Meta will enhance its measures to prevent children from accessing age-restricted content as part of the settlement. Despite this, the agreement does not mandate Meta to abandon personalized recommendations or targeted advertising, nor does it address certain problematic content highlighted by Meta researchers, including posts on Instagram that negatively impact users’ body image.
The total settlement amount, which includes payments to 47 U.S. states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands, equates to approximately three to four months of profit for Meta. The settlements also cover payments exceeding $16.7 billion US to the aforementioned entities, with Texas securing a separate settlement exceeding $1 billion US.
Additionally, the settlement resolves lawsuits from California, Illinois, New Mexico, and Washington, D.C., related to privacy issues stemming from the Cambridge Analytica scandal. These states will receive $459.3 million US to address these legal matters. The settlement’s far-reaching implications have been acknowledged by legal experts, who believe that Meta and other companies were under pressure to alter their business practices regardless of the lawsuit outcomes, due to public and legislative scrutiny.
