OAKLAND, United States — Meta agreed Wednesday to pay up to $16.7 billion to U.S. states and impose new restrictions on how teenagers use Facebook and Instagram, ending a landmark trial over allegations that the company harmed young users.
The proposed settlement, filed in federal court, resolves claims from 29 states that Meta deliberately designed its platforms to keep young people engaged, misled the public about potential risks and illegally collected data from children under 13.
The agreement, signed by 51 states and territories, requires court approval and applies only to teenagers in those jurisdictions. Meta did not admit liability or wrongdoing.
U.S. District Judge Yvonne Gonzalez Rogers said she expected to approve the agreement soon.
The settlement requires Meta to introduce several safeguards for teenage users. Facebook and Instagram accounts for teenagers would automatically become inaccessible from midnight to 6 a.m. local time.
Teen accounts would also have a default limit of two hours of cumulative daily use across Meta’s apps. Messaging and long-form video viewing would not count toward the limit.
If competing platforms adopt similar measures, the nighttime restriction would expand to 10 p.m. to 7 a.m., while the daily limit would drop to 60 minutes per app, with a two-hour total cap.
An independent auditor selected jointly by Meta and the states would monitor compliance for 10 years, with Meta covering the cost.
California would receive between $1.5 billion and $2.1 billion over 10 years, while New York would receive up to $1.13 billion. The settlement calls for 10 annual payments.
California Attorney General Rob Bonta called the agreement a major step toward protecting children online.
Meta Chief Legal Officer C.J. Mahoney said the company wanted TikTok and YouTube to adopt similar protections, arguing that teenagers use multiple social media platforms.
The settlement does not resolve thousands of personal injury lawsuits and cases brought against Meta from school districts. The states’ case was among the most significant legal challenges facing the company, which had warned that losing at trial could expose it to more than $1 trillion in penalties.
The agreement came during the second week of the trial. Instagram head Adam Mosseri testified Tuesday about the company’s teen safety tools and acknowledged promoting some features without disclosing low adoption rates from early testing.
Other witnesses alleged Meta knew some of its safety measures were ineffective. Meta founder and CEO Mark Zuckerberg had been expected to testify before the settlement ended the trial.
