Meta and a coalition of state attorneys general have settled a major federal case centering on allegations that the social media giant misrepresented the extent of child-related mental health harms caused by apps like Facebook and Instagram.
The settlement was revealed a court filing released Wednesday that details several requirements Meta must make to its apps as part of a proposed “consent judgement.” These include daily usage limits and “nighttime blocks” for teenagers that use the company’s apps like Facebook and Instagram, “enhanced age assurance measures” that would prevent children from using the apps, and making additional tools for parents and guardians.
As part of the settlement, Meta agreed to pay $16.7 billion. The state of California could receive $1.5 billion to $2.1 billion if the court officially approves the settlement, according to an announcement by California attorney general Rob Bonta.
“Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of a difference for children and their families,” Bonta said in a statement. “Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months.”
Shares of the social media giant gained 5% during premarket trading after the news broke.
Upon the the court officially deems “Final Judgment,” all parties “waive” their rights to appeal, the legal filing said.
The settlement comes amid the second week of the trial, taking place at Oakland federal courthouse, co-led by California Attorney General Rob Bonta and the AGs from Colorado, New Jersey and Kentucky, who represent a bipartisan group of 29 AGs in a combined case stemming from a 2023 lawsuit.
Instagram chief Adam Mosseri testified on Tuesday that he doesn’t direct employees to withhold certain child-safety and product information from him to provide cover and mislead the public.
Because the federal trial was taking place in Meta’s home state of California and involves multiple states, the stakes are particularly high for the Mark Zuckerberg led social media giant.
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