Meta agrees to $16.6bn settlement in landmark social media addiction trial - but denies wrongdoing
Meta also agreed to make changes for teenage users, including daily usage limits and nighttime blocks
Meta has reached a settlement with 29 US states over claims it failed to protect children on Facebook and Instagram.
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The social media giant will pay up to $16.68bn (£12.26bn) to resolve the case.
However, the California-based company has denied any wrongdoing while agreeing to the settlement, court documents show.
The landmark trial saw the tech giant, which owns Facebook, Instagram and WhatsApp, accused of violating a series of federal and state privacy laws for children - as well as making their platforms deliberately addictive to young people.
Four US states sought billions of dollars from Meta, on behalf of a group of 29 states that filed a lawsuit against the company in 2023.
The multi-billion-dollar settlement averts one of the highest-profile tests yet of allegations that social media companies harmed young users.
Read more: Is it time to ban Meta glasses at work?
Meta also agreed to make changes for teenage users of Facebook and Instagram nationwide, including daily usage limits and nighttime blocks, court papers show.
The claims were part of a broader wave of litigation brought by states, local governments, school districts and individuals alleging Meta and other social media companies fueled a nationwide youth mental health crisis.
The federal trial covered claims from California, Colorado, Kentucky and New Jersey that Meta violated their state laws protecting consumers.
It also covered claims from 29 states that Meta violated the federal Children's Online Privacy Protection Act by collecting personal data from users it knew were children without parental notification or consent, and using the data to train machine learning and generative AI models.
It comes after several countries - including the UK - have introduced social media bans for children and teenagers amid concerns over the impact of its use on mental health.
Meta's Chief legal officer on the agreement: "I’m pleased to announce that Meta has reached an agreement with a bipartisan group of state attorneys general from around the country on a new set of rules governing teens’ use of social media.
"The framework we’ve negotiated will empower parents to easily manage how their children access our platforms. Our new Time Limit commitments, Night Mode features and usage limits during school hours set the right path forward for our whole industry, but this framework will only work if all our peers join us.
"Because teens move fluidly across dozens of apps, we need an industrywide solution. We therefore call on our industry peers, TikTok and YouTube, to implement this new framework, right away.
"As a parent, I’m proud of both the work Meta has done to protect kids historically, and of this new groundbreaking agreement. But its success depends on all other social media platforms following Meta’s lead."