Meta has agreed to pay up to $17.1 billion and make sweeping changes to Facebook and Instagram to settle allegations that it designed its platforms to addict children while misleading the public about their risks.
The proposed agreement resolves claims by 51 states and territories, including a federal case involving 29 states that was being tried in Oakland. The trial was in its second week when the settlement was disclosed on Wednesday. Meta will pay at least $12.1 billion over 10 years, and another $5 billion would be added if other major social media companies agree to adopt comparable youth protections, bringing the settlement’s total possible value to $17.1 billion.
Attorneys general who sued the Big Tech company celebrated the agreement Wednesday morning, including Democratic District of Columbia Attorney General Brian Schwalb, who called it a “monumental public health victory.”
“Meta intentionally exploited kids for profit and then lied about it,” Schwalb, one of 29 attorneys general in the lawsuit, said in a statement.
California could receive between $1.5 billion and $2.1 billion, while the District of Columbia expects to receive between $90.3 million and $129.3 million. The agreement remains subject to court approval.
Florida and New Mexico appear to be the only two states out of the 29 which did not settle with the Big Tech company, according to a statement issued by California Attorney General Rob Bonta, a Democrat.
The settlement follows a separate ruling against Meta in New Mexico earlier this month. A state judge ordered the company to establish a $567 million fund to address harm to children associated with Facebook and Instagram. That award came on top of $375 million in civil penalties imposed by a jury in March, bringing Meta’s liability in the New Mexico case to $942 million. Meta has said it will appeal that ruling.
Kansas Attorney General Kris Kobach, a Republican, called the deal the “largest Big Tech accountability victory in history and a monumental win for the children of Kansas and America.” The settlement is slated to direct more than $134 million to the state.
Under the multistate settlement, Meta must impose a combined two-hour daily limit for children using Facebook and Instagram. Young users will face mandatory “productive pauses” after 15 minutes of continuous use and again after 60 and 90 minutes.
The company must block children’s access to feeds between midnight and 6 a.m., silence notifications from 10 p.m. to 7 a.m. and restrict notifications during weekday school hours.
Other requirements include stronger age-verification systems, improved parental controls, and enhanced safeguards against bullying and content promoting eating disorders, suicide, or self-harm. Meta must also limit beauty filters, visible “like” counts and other social-comparison features associated with poor mental health outcomes.
Independent auditors will assess the company’s compliance under state oversight.
META ORDERED TO PAY $567 MILLION OVER CHILD PROTECTION FAILURES
Meta said the agreement involves approximately $18 billion under its accounting description and that it expects to record a roughly $10 billion legal expense in the third quarter of 2026. The company has not admitted wrongdoing. Once the court enters a final judgment, the parties will waive their rights to appeal.
The Washington Examiner contacted Meta for a statement.