Meta has agreed to a landmark settlement with US state attorneys general that will introduce sweeping restrictions on how teenagers use Facebook and Instagram.
The agreement, announced on Wednesday, settles a multi-state lawsuit filed in 2023 by a bipartisan group of state attorneys general. The lawsuit accused Meta of designing features that encouraged addictive use among young people and of improperly collecting teenagers’ data.
Under the agreement, teenagers will be limited to two hours of combined daily use of Facebook and Instagram. Their access to the platforms will also be restricted between midnight and 6 am, although messaging services will remain available during the overnight period.
Meta will also silence notifications during school hours and introduce stronger systems for detecting users’ ages.
The company has further agreed to introduce stricter default settings for teen accounts. These include restrictions on cosmetic surgery and extreme makeup filters, while likes and other reactions on teenagers’ posts will be hidden by default.
Parents will also receive greater control over how their children use the platforms.
“We want to ensure teens benefit from this new industry standard, but we cannot do it alone. These protections will only be truly effective if we work with our peers — TikTok and YouTube — to put the same measures in place,” Meta said in an open letter to Snap, TikTok and YouTube.
The agreement is designed to encourage other major social media companies to adopt similar measures.
If Snap, TikTok and YouTube reach comparable settlements with state authorities and implement the framework, Meta would face even tighter restrictions. Its daily limit for teenagers would fall from two hours to one hour if the rival platforms agree to similar measures.
Meta would also increase the amount it pays under the settlement. The payout could rise from $12bn to more than $17bn, with the total figure reaching about $18bn under the most expansive terms if its rivals meet the conditions.
A source familiar with the agreement explained the reasoning behind the arrangement.
“The rationale is that it’s not a comprehensive agreement unless others sign on, and certainly competitors must match at least a portion of payment if Meta is going to pay out fully … it ensures incentive for continued action on this,” the source said.
The settlement is expected to remain in effect for most provisions for 10 years.
The $18bn figure would represent the largest settlement in Meta’s history, significantly exceeding the $5bn penalty the company paid to the Federal Trade Commission in 2019.
The agreement also requires states to use the settlement funds for initiatives addressing the effects of social media use on young people. Possible programmes include counselling, wellness campaigns and after-school activities. Individual users will not receive payments.
Despite the extensive changes, the settlement does not require Meta to alter its recommendation algorithm.
Psychologist Jonathan Haidt criticised that aspect of the agreement, arguing that the algorithm remains designed to maximise engagement among young users, including engagement with harmful content.
The absence of similar restrictions across competing platforms has also raised concerns that teenagers could simply switch to other social networks after reaching their Instagram or Facebook limits.
Meta has maintained that tackling excessive social media use requires broader action across the industry rather than restrictions on a single platform.
The settlement still requires approval from a judge and is expected to be fully implemented within six months.
The agreement brings an end to years of negotiations over a lawsuit that had potentially exposed Meta to claims worth as much as $200bn.
Following the announcement, Meta’s shares initially rose before ending the day about 1% higher.
“Litigation is over,” a source familiar with the matter said. “They are putting it to bed.”
