Meta agrees £12.5bn settlement over teen social media addiction

Meta has agreed to a settlement worth up to $17 billion — around £12.5 billion — with US states following a major legal challenge over the impact of Facebook and Instagram on children and teenagers.

The agreement brings a landmark federal case to an early conclusion and includes a package of new protections for younger users. The legal action involved 47 US states, along with other jurisdictions, and accused Meta of designing its platforms in ways that encouraged excessive and potentially harmful use.

The allegations included claims that Meta knew about the potential effects of its products on young people's mental health while continuing to prioritise engagement and time spent on its platforms.

Major changes promised for young users

The settlement would require Meta to introduce tougher controls across Facebook and Instagram.

Among the measures are daily usage limits, restrictions on notifications during school hours and overnight periods, stronger age-assurance systems and improved controls over content aimed at younger users.

Parents are also set to receive stronger and easier-to-use controls, while features that encourage social comparison, such as visible "like" counts, will face greater restrictions.

Meta has also agreed to strengthen protections around content involving bullying, eating disorders and self-harm.

The measures are intended to make it harder for children to spend prolonged periods on the platforms without safeguards being triggered.

A major legal setback for Meta

The settlement avoids what could have become a much larger courtroom battle for the technology giant.

The trial had only recently begun in California, with Instagram chief Adam Mosseri giving evidence. The proceedings had raised questions about how Meta handled concerns over teenage safety and whether some of its existing safeguards were genuinely effective.

Former Meta employees and child-safety campaigners have argued that the company's protections did not go far enough, while Meta has maintained that it has invested heavily in making its services safer for teenagers.

The company says the settlement builds on measures it has already introduced and has called for other major social media companies to adopt similar standards.

The money is only part of the story

At around £12.5 billion, the proposed settlement is one of the largest consumer-protection agreements involving a technology company.

However, the financial figure is only one part of the significance of the case. The agreement could have a wider impact if the safety requirements become a model for how social media companies are expected to treat younger users.

The legal action also reflects a growing willingness among governments and regulators to challenge the way social media platforms are designed, particularly where children and teenagers are concerned.

For Meta, the settlement removes the immediate threat of a potentially far larger trial outcome. For parents, the more important question will be whether the promised changes actually make Facebook and Instagram safer for young people.

The agreement is subject to the necessary legal approval before it can take full effect.