Meta locks in $18 billion settlement to overhaul teen social media experience

Meta Platforms has agreed to an $18 billion settlement with 29 US states to resolve long-standing claims regarding the safety of children on its social media platforms. The deal, which is pending judicial approval, marks a significant regulatory milestone that requires the technology giant to implement sweeping new protections for users under 18 on Instagram and Facebook. The agreement effectively caps the company’s liability in a case that had only entered its second week of federal trial, where potential exposures were estimated in the hundreds of billions of dollars.

The core of the settlement involves a cumulative daily two-hour time limit for teenagers, which can only be disabled with parental permission. Once this limit is reached, users are locked out of both Facebook and Instagram, with the time spent across both applications counting toward the total. Meta stated that the limit will also apply if the company detects a user operating multiple accounts, ensuring that the restriction cannot be easily circumvented.

Beyond time limits, the agreement introduces a default “Night Mode” that blocks underage users from accessing, posting, or viewing content between midnight and 6 a.m. This is a distinct and more restrictive measure than the existing notification muting features. Additionally, parents and guardians will be able to set a non-algorithmic, non-personalised feed as the default experience for teens, rather than it being a temporary option that reverts to algorithmic recommendations each time the app is opened.

Further operational changes include usage prompts appearing after every 15 minutes of continuous use, supplementing existing 60-minute daily alerts. Notifications will be muted by default during school hours, defined as 8 a.m. to 3 p.m., with exceptions made only for direct messages and security alerts. Autoplay will also be turned off by default, requiring a “deliberate action” such as tapping or swiping to view more content, while like and reaction counts will be hidden by default for underage users.

The settlement requires these controls to remain in place for 10 years. Meta has also strengthened its technology for identifying users aged 13 to 17 who may provide adult birth dates, ensuring they receive appropriate protections. The company will continue to prevent teens from following age-inappropriate accounts and will default them into private accounts to restrict contact from suspicious adults.

A notable financial component of the deal is that 30 per cent of the settlement, approximately $5.3 billion, is contingent on TikTok and YouTube adopting similar industry-wide standards. Meta published an open letter urging these competitors to join the commitment, arguing that when teens are restricted on one app, they simply move to another. The remaining funds will be distributed to the states over the 10-year period.