Meta Platforms has agreed to pay up to USD 18 billion (~RM72.48 billion) over the next decade and implement strict usage controls for teenagers on Facebook and Instagram, according to Reuters.
The landmark agreement resolves legal claims brought by nearly all US states alleging that the tech giant intentionally designed its social media platforms to be addictive to young users and lied to the public about product safety.
The settlement brings an abrupt end to a high-profile federal trial in Oakland, California, overseen by US District Judge Yvonne Gonzalez Rogers, where state prosecutors were originally seeking up to USD 200 billion (~RM805.5 billion) in civil penalties.
Why US states filed massive lawsuits against Meta
The trial combined legal claims brought by a bipartisan coalition of state attorneys general across the United States.
According to court documents cited by Reuters, prosecutors accused Meta of violating state consumer protection laws by engineering addictive features such as infinite scrolling, push notifications, and engagement algorithms specifically designed to keep minors hooked.
State prosecutors argued that Meta repeatedly lied about the safety of its products while concealing internal research showing that apps like Instagram worsened youth mental health issues, including anxiety, depression, and body image concerns. Furthermore, a group of 29 states alleged that Meta violated the federal Children’s Online Privacy Protection Act by harvesting personal data from children under 13 without parental consent and using that data to train its generative AI models.
Mandatory usage limits and nighttime blocks for teens
As part of the 10-year settlement agreement, Meta will enforce sweeping default safety restrictions for adolescent users across Facebook and Instagram.
Reuters also mentioned that the teen accounts will face a mandatory two-hour daily time limit across both apps and will be blocked from accessing the platforms during nighttime hours between midnight and 6:00 AM, unless explicit parental permission is granted.
To minimize distractions during the school day, Meta will also automatically turn off most push notifications for teen users between 8:00 AM and 3:00 PM, while strengthening age-verification technology to prevent minors from accessing age-restricted material. Notably, the agreement does not force Meta to give up personalized recommendation algorithms or targeted advertising.
Out of the total payout, Meta guarantees approximately USD 12.7 billion (~RM51.14 billion) to 47 US states, Washington D.C , select US territories with California receiving up to USD 2.2 billion (~RM8.85 billion) , New York receiving USD 1.1 billion(~RM4.42 billion) , and Texas taking in over USD 1 billion (~RM4.02 billion) under a separate resolution.
An additional USD 5 billion (~RM20.13 billion) remains contingent on whether competing platforms, including TikTok, Snapchat, and YouTube, adopt matching youth safety restrictions. Despite agreeing to the financial settlement and operational restrictions, Meta denied all allegations of wrongdoing and stated that maintaining a safe environment for teenagers remains an absolute imperative.
Beyond the settlement: What this means for social media users
This landmark settlement is not just about the massive payout Meta must deliver, it signals a major shift in how digital platforms are held accountable for youth online safety. Beyond Meta, platforms like TikTok, YouTube, and Snapchat face growing regulatory pressure worldwide to introduce stricter safeguards for young users.
What about young social media users here in Malaysia? While local regulations under the Child Protection Code enforce minimum age requirements for account registration, legal frameworks can only go so far. Curbing digital addiction and protecting young minds online ultimately relies heavily on active parental guidance and digital literacy in an increasingly connected world.
What are your thoughts on Meta’s record settlement and teen usage restrictions? Share your thoughts with us in the comments!
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