Meta’s $18bn US settlement sets new benchmark for global child safety regulation
The landmark deal mandates strict usage limits and age-verification upgrades for US users, creating a template that regulators in the EU, UK, and Australia are likely to cite in their own proceedings.
Meta has reached a landmark $18 billion settlement with 48 US states and territories, resolving a federal lawsuit that alleged the company endangered children through addictive platform design. The agreement, which concludes a legal battle that began in 2023, forces the social media giant to implement significant structural changes to its Facebook and Instagram platforms for users under the age of 18.
The settlement mandates a default two-hour daily usage limit and a night curfew from midnight to 6am for child users. Meta is also required to hide social comparison features, such as likes and reactions, and ban cosmetic procedure filters by default. These settings can only be overruled with parental consent, marking a shift towards more direct institutional oversight of digital consumption.
Financially, the payout is structured over 10 years, with Meta initially agreeing to pay 70 percent, or roughly $12.7 billion. The remaining approximately $5 billion is contingent on rival platforms, including Snapchat, TikTok, and YouTube, adopting similar measures. This conditional structure suggests that regulators view the issue as an industry-wide failure rather than an isolated corporate misstep.
The deal also requires Meta to improve age-verification technology using both internal and third-party tools, subject to regular outside audits. This is a critical development for Australia, where the eSafety commissioner found in August that more than eight in 10 young Australians continue to use social media despite a ban on under-16s, largely due to ineffective age-checks.
While the changes apply specifically to the US, the settlement is expected to influence regulatory actions globally. The European Union is currently pursuing legal cases against Meta under the Digital Services Act, accusing the group of designing its platforms to be addictive. Similarly, the UK government has announced a sweeping ban on social media for those below 16, with further considerations for overnight curfews and limits on infinite scrolling.
Critics argue that while the settlement is historic, it addresses symptoms rather than the root cause of addictive design. However, the mandated transparency in parental supervision tools and the rigorous audit requirements for age-assurance provide a concrete framework that other jurisdictions may seek to replicate in their own policy frameworks.
