META will pay up to $18 billion in a settlement related to teen social media use, capping Instagram and Facebook usage for teenagers at two hours daily following lawsuits from nearly all U.S. states over child safety concerns. This agreement emerged during a trial that started with high potential penalties, where four states were seeking up to $200 billion. Notably, while Meta will implement usage limits and restrict access during certain hours, it will continue its practices around targeted advertising for teens.
Additionally, the settlement may encourage competitors like TikTok and YouTube to adopt similar protections. However, states like Florida and New Mexico opted out of the settlement due to perceived inadequacies. Legal experts suggest this case could set a precedent for future regulations on social media platforms.