Meta Platforms has agreed to pay up to $18 billion and introduce tighter restrictions for teenage users on Facebook and Instagram as part of a major settlement with nearly all U.S. states.
The agreement resolves claims that Meta designed its platforms in ways that encouraged addictive behavior among children while failing to adequately communicate potential safety risks.
Meta Settlement Ends Major Federal Trial
The settlement brings an end to a federal trial centered on allegations that Facebook and Instagram harmed younger users.
California, Colorado, Kentucky and New Jersey had been preparing to seek potentially massive civil penalties against Meta.
Although the agreement does not force Meta to completely redesign Facebook or Instagram, it introduces some of the most significant restrictions yet on how teenagers can use the platforms.
The settlement could also influence thousands of other lawsuits involving social media companies and youth safety.
Facebook and Instagram Face New Teen Usage Limits
Under the agreement, Meta will introduce several restrictions over the next decade.
Teenagers will generally be limited to two hours per day on Facebook and Instagram unless parental permission allows additional usage.
Meta will also prevent teenagers from using the platforms between midnight and 6 a.m. without parental consent.
During typical school hours, from 8 a.m. until 3 p.m., most push notifications sent to teenage users will also be disabled.
The company has additionally agreed to strengthen safeguards designed to prevent minors from accessing age-restricted material.
Restrictions Could Become Even Tighter
Some parts of the settlement depend on whether competing platforms introduce similar youth protections.
If Snapchat, TikTok and YouTube adopt comparable limits, Meta’s restrictions could become stricter.
The agreement does not, however, require Meta to eliminate personalized content recommendations or targeted advertising.
Meta denied wrongdoing as part of the settlement.
The company said providing teenagers with a safe and productive experience remains a major priority and emphasized that it wants its services to work better for both parents and younger users.
Meta shares were trading approximately 1.1% higher following the announcement.
U.S. States Could Receive Billions From Meta
The agreements include payments of up to approximately $17.7 billion to 48 U.S. states, Washington, D.C., Puerto Rico, American Samoa and the Northern Mariana Islands.
California could receive approximately $2.2 billion, while both New York and Texas could collect more than $1 billion.
Some states are expected to place the settlement money into general government accounts. Others plan to dedicate part of the funds to programs addressing children’s mental health and online safety.
Meta has guaranteed approximately $12.7 billion in payments.
An additional $5 billion could become payable depending on whether Snapchat, TikTok and YouTube introduce similar protections for younger users.
Settlement Could Change the Social Media Experience
Legal experts believe the agreement could have consequences beyond Meta.
Social media companies have been facing increasing pressure from lawmakers, regulators, parents and courts over how their platforms affect children.
The new restrictions are specifically designed to reduce the amount of time teenagers spend on Facebook and Instagram.
If competing platforms ultimately adopt similar measures, the settlement could help establish broader standards for how social media companies serve young users.
Governments outside the United States are also increasing oversight. Australia, for example, has introduced restrictions on social media access for children under the age of 16.
Meta Also Resolves Cambridge Analytica Privacy Claims
The agreements also require Meta to pay $459 million to settle privacy-related claims connected with the Cambridge Analytica controversy.
That case involved the unauthorized collection of personal information belonging to millions of Facebook users by a British consulting company.
The main settlement still requires court approval.
U.S. District Judge Yvonne Gonzalez Rogers, who has been overseeing the federal trial, indicated that she viewed the agreement positively and expected to approve it.
The trial had already begun, with Instagram chief Adam Mosseri starting his testimony. Meta CEO Mark Zuckerberg had also been expected to testify.
Social Media Companies Still Face Thousands of Lawsuits
Despite the Meta settlement, the broader legal battle over children’s social media use is far from over.
Social media companies continue to face thousands of lawsuits from individuals, school districts, municipalities and government bodies.
Many of these cases allege that platforms knowingly developed features intended to increase engagement among children, contributing to problems including anxiety, depression and other mental health concerns.
Several states also accused Meta of violating consumer protection laws.
In addition, 29 states alleged that Meta violated the federal Children’s Online Privacy Protection Act by collecting children’s personal information without parental authorization and using some of that data in connection with generative AI systems.
Previous Court Cases Increase Pressure on Meta
Meta has already faced several major legal setbacks involving youth safety.
Earlier in 2026, the company lost two phases of a significant case brought by New Mexico over claims that Meta misrepresented the safety of its platforms.
A jury ordered Meta to pay $375 million in March, while a judge later imposed an additional $567 million payment and required new youth-safety measures.
In another case, a Los Angeles jury found Meta and Google’s parent company Alphabet negligent in the design of their platforms.
The companies were ordered to pay $6 million to a woman who said she became addicted to Instagram and YouTube while she was a child.
Meta and Google have said they plan to appeal those verdicts.
Not Every State Joined the Meta Settlement
New Mexico was not included in Wednesday’s settlement, although state officials said the agreement represented progress toward stronger protections for children online.
Florida also declined to participate and intends to continue pursuing its case against Meta.
That means the company could still face additional litigation even after resolving claims with most U.S. states.
The $18 billion agreement nevertheless represents one of the most significant attempts yet to address concerns about social media addiction, children’s privacy and the responsibilities of major technology platforms.
