Meta agrees to major $17billion settlement and changes to Facebook and Instagram after trial over teen addiction

Meta has agreed to a $17.1billion (£12.6billion) settlement and new restrictions for teenage Facebook and Instagram users after a landmark US trial.

California and 28 other states had brought the case against Meta, the technology company that owns Facebook , Instagram, WhatsApp and Threads, alleging that they had deliberately incorporated addictive features into its platforms.

The suit also claimed that Meta had misled users about their safety and unlawfully collected data belonging to children under 13 without parental permission.

The jury trial started in Oakland, California last week and had been expected to last for six weeks, but the landmark agreement was announced today (August 26).

Under the terms of the settlement, Meta will pay at least $12.1billion (£8.9billion) over the next decade, while a further £5billion could be added if competitors such as TikTok and YouTube adopt similar safeguards and make related payments.

Meta had denied the allegations in the lawsuit throughout the proceedings and the settlement does not include an admission of wrongdoing.

The agreement also requires Meta to bring about a number of changes to Facebook and Instagram for accounts belonging to users under 18.

There will be two-hour daily limits across the two platforms for teenagers, with pauses and reminders to appear after 15 minutes of continuous use and after 60 and 90 minutes of total use.

Both apps will also be blocked for users under 18 between midnight and 6am, unless parents or guardians intervene, while notifications will be silenced between 10pm and 7am.

Notifications will also be blocked between 8am and 3pm on school days.

Meta will also be required to offer teenagers a non-personalised, chronological feed, like counts will be hidden by default and filters simulating extreme cosmetic procedures will be made unavailable.

California Attorney General Rob Bonta has said the settlement “will make social media less dangerous for our kids and make a world of difference for children and their families”.

“Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months”.

“I am proud to deliver this settlement that addresses the concerns at the core of our lawsuit and institutes real change, real transparency, and real enforceable protections for children on Facebook and Instagram — right now, no more waiting,” he added.