Oakland [US], August 26 : Meta has agreed to make major changes to Facebook and Instagram aimed at protecting children and teenagers as part of a proposed settlement with US states over allegations that its social media platforms harmed young users.
The settlement, filed on Wednesday in the US District Court for the Northern District of California, would introduce default daily time limits, restrictions on overnight use, stronger parental controls and new measures to determine users' ages. The agreement remains subject to court approval.
Under the proposed terms, users below 18 will face a default daily usage limit of two hours, which can only be lifted by a parent. Meta will also block access for teenage users between midnight and 6 am by default, while notifications will be restricted during nighttime hours and the school day.
California Attorney General Rob Bonta said the changes would be introduced within months.
"Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms -- and will do it within months," Bonta said in an official release.
The settlement also requires Meta to strengthen age-assurance systems to identify users below 18 and detect children below 13 using its platforms. An independent auditor will oversee the company's compliance with the agreement.
On the financial side, the court filing lists the maximum payments to settling states across all guaranteed and conditional instalments at about USD 16.68 billion.
However, part of the amount is conditional. The agreement says Meta will make guaranteed payments over 10 instalments, while additional payments will depend on certain conditions being met. If those conditions are not met by a state during the agreement period, the contingent payments would not be payable.
The California Attorney General's office described the monetary component as payments of up to USD 17 billion to states over 10 years.
The settlement follows a lawsuit filed in 2023 alleging that Meta designed features on Facebook and Instagram that encouraged excessive and compulsive use among children and teenagers while failing to adequately disclose the risks. The settlement resolves claims brought by 29 US states.
The lawsuit also alleged that Meta illegally collected and used data belonging to children below the age of 13 and violated federal and state laws, including the Children's Online Privacy Protection Act.
Meta has denied the allegations and any liability. The proposed settlement says the agreement does not amount to an admission of wrongdoing by the company.
Trial in the case had begun on August 18 in the US District Court for the Northern District of California before the parties reached the proposed settlement.