Meta has agreed to pay up to $18bn to US states and introduce new restrictions for teenage users of Instagram and Facebook, settling a California federal court case over claims that the company designed its platforms to be addictive to children.
The settlement, announced yesterday, ends a trial that began earlier this month in a California federal court. State attorneys general had sued Meta, accusing it of building features that kept young users hooked on its apps.
Settlement terms#
Under the agreement, Meta will pay the states over the next 10 years to fund youth online safety initiatives and other state priorities. The total figure is described as up to $18bn, but the states are guaranteed to receive $12.7bn.
The remaining $5.3bn depends on two conditions involving YouTube and TikTok:
- YouTube and TikTok implement a one-hour Daily Limit, Night Mode, and age assurance measures.
- YouTube and TikTok each pay an amount matching the 30% figure, with half of the remaining funds tied to YouTube’s payment and half tied to TikTok’s.
Fifty-two attorneys general have signed the settlement. It cuts off a trial that was expected to include testimony from Meta CEO Mark Zuckerberg and other executives. YouTube and TikTok have not commented.
New limits for teen accounts#
Meta also committed to a set of changes for users under 18 on Instagram and Facebook. They include a default two-hour daily time limit that teens can only turn off with a parent’s permission.
- Both apps will be blocked for these users between midnight and 6am.
- Notifications will be muted by default during school hours.
- Teenagers will be able to choose a non-algorithmic feed, and Meta will remind them of that option regularly.
Reactions#
California Attorney General Rob Bonta called the deal “a settlement with Meta that will make social media less dangerous for our kids and make a world of a difference for children and their families.”
The Electronic Frontier Foundation (EFF) criticised the settlement for restricting teenagers’ free speech rights. The group also said it embeds age assurance into every product, mandating the collection of more personal information from users of all ages.
Other critics argued that age assurance is a privacy risk, ending meaningful online anonymity and forcing Meta to collect more data about users of all ages while giving states access to that data. They also said the deal puts Meta in charge of how social media works, gives the company a competitive moat, and automatically enrolls every teenager in the country in an untested experiment.
Potential music industry impact#
The changes could affect music marketing and how artists connect with fans in the United States, especially if YouTube and TikTok adopt similar measures. The impact could widen if the changes are rolled out in other countries, either voluntarily by the platforms or through regulation modelled on the US settlement.
