The settlement amount will be distributed among U.S. states over a period of 10 years according to their population.
Technology company Meta has agreed to an historic $18 billion settlement with the attorneys general of 48 U.S. states.
According to U.S. media reports, the settlement brings to an end a major federal lawsuit concerning the harmful effects of social media on children, marking the beginning of a new era in the legal responsibilities of technology companies for content available on their platforms.
Under the settlement, Meta will introduce major changes to its services, Facebook and Instagram. These include automatically limiting the use of the platforms to two hours for users under the age of 18.
The agreement includes a unique condition under which Meta will initially pay only 70% of the settlement amount. The remaining 30% — approximately $5.3 billion — will be paid only if TikTok and Alphabet-owned YouTube also agree to impose an automatic one-hour daily limit on their apps for underage users, with each company paying approximately $5.3 billion to the states as a penalty.
According to U.S. media reports, the massive settlement amount will be distributed annually over a 10-year period among the states that signed the agreement, based on their respective populations. The agreement includes 48 U.S. states and four U.S. territories: the District of Columbia, Puerto Rico, American Samoa and the Northern Mariana Islands. New Mexico, which recently won a similar lawsuit against Meta, and Florida are not currently part of the settlement.
Other changes agreed upon for the platforms include the introduction of a “Night Mode,” under which the apps will automatically be blocked for underage users from midnight to 6 a.m.
In addition, a “School Mode” will disable notifications during school hours, from 8 a.m. to 3 p.m. These settings can only be changed after obtaining formal parental permission.
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