Meta Platforms Inc. has reached an $18 billion settlement with 52 U.S. states. This agreement addresses claims that its platforms contribute to a youth mental health crisis. The deal, announced on Wednesday, includes major changes to how Meta operates for users aged 13 to 17. This includes a default two-hour daily time limit on Facebook and Instagram. Users will also have restricted access overnight unless parents change the settings. Notifications will be muted during school hours.
Key Details
California Attorney General Rob Bonta called the settlement "transformational." He highlighted the addition of an independent auditor to monitor Meta's compliance with the new rules. The settlement is a key moment for online safety advocates who have pushed for stricter rules on social media. However, some critics believe the deal does not do enough to change Meta's main advertising-based business model.
Background
Despite the large amount, the settlement is minor for Meta. The company reported about $60 billion in profit last year. Meta did not admit wrongdoing as part of the agreement, which will be paid over ten years. Meta's Chief Legal Officer C.J. Mahoney said the changes will help parents manage their children's access to its platforms. This settlement follows a recent court ruling in New Mexico. There, Meta was ordered to pay $942 million and implement stricter safety measures for children.
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The settlement may lead to increased scrutiny on other tech companies, especially TikTok and YouTube. Advocates are pushing for similar changes across the industry. This regulatory environment may affect advertising revenues and operational costs for social media platforms. Watch for possible legislative action as Congress considers broader rules on online safety and child protection in the coming months.
Based on reporting by: us.cnn.com, cnn.com