Meta's $18bn Settlement Brings Major Changes for Young Users

Meta has agreed to an $18bn settlement with US states over allegations that Facebook and Instagram exposed children to harmful and addictive features, paving the way for major new restrictions on how young people use the platforms.

The agreement, reached with 48 US states and territories, will require Meta to introduce stronger protections for users under 18, including daily time limits, overnight curfews, expanded parental controls and tighter age-verification measures.

The settlement follows a growing wave of lawsuits accusing Meta of deliberately designing its platforms to encourage excessive use and failing to adequately protect children from harmful content.

Meta has denied wrongdoing.

What was Meta accused of?

Twenty-nine US states accused Meta of designing its platforms to encourage addictive behaviour, failing to properly verify users' ages and making it possible for teenagers to bypass parental controls.

The states also alleged that Meta's systems amplified harmful or exploitative content and that the company improperly collected and used personal information belonging to children under 13 without appropriate parental consent.

The legal pressure intensified this year after Meta lost cases involving alleged harm to young users.

In February, a Los Angeles jury found Meta liable in a case brought by a young woman identified as KGM. In March, a New Mexico jury ordered the company to pay $375m over allegations that it endangered children.

A New Mexico judge subsequently ordered Meta to pay another $567m in a second phase of that case.

What does the settlement require?

Meta will make payments over 10 years, with maximum payouts totalling about $16.7bn to US states and territories, including Washington, DC. California could receive about $2.2bn, while New York could receive $1.1bn. Texas reached a separate agreement worth more than $1bn.

Some states intend to use the money for children's mental health services.

However, the settlement does not require Meta to end personalised recommendations or targeted advertising. It also does not specifically address all content researchers have identified as harmful to young users.

Meta said ensuring teenagers have a "safe and productive experience" on its platforms was a priority.

How will Instagram and Facebook change?

Under the agreement, users under 18 will face a two-hour daily limit on Facebook and Instagram, while a night-time curfew will restrict access between midnight and 6am.

Meta will also hide likes and reactions on children's accounts and disable cosmetic-procedure filters by default. Parents will have the ability to override some of these settings.

Push notifications for teenage users will largely be suspended during school hours, from 8am to 3pm.

Parents and guardians will gain greater oversight of children's accounts. They will be able to receive information about time spent on the platforms, social connections and accounts messaging their children.

Parents will also receive alerts when a teenager messages an adult account for the first time. Notifications will also be triggered when a child searches for terms associated with suicide, self-harm or eating disorders.

Meta has further agreed to strengthen its age-verification technology using its own systems and third-party tools, with independent audits to assess how effectively the measures work.

The issue is particularly significant in Australia, where under-16s have been prohibited from using social media platforms since December 2025, although regulators have found that many young people continue to access them.

Could the changes spread worldwide?

The new restrictions initially apply to users in the United States, and Meta has not confirmed whether the same measures will be introduced globally.

However, regulators in Europe, Australia and other jurisdictions are increasingly demanding stronger protections for children online.

Meta will initially pay about 70 percent of the settlement, or roughly $12.7bn. The remaining $5bn will depend on whether major competitors, including TikTok, Snapchat and YouTube, introduce comparable measures and agree to similar financial commitments.

If rival platforms adopt equivalent restrictions, Meta could also reduce its daily usage limit from two hours to one.

The changes are expected to be introduced in stages once the settlement receives court approval, with non-personalised feeds expected within four months, broader compliance measures within six months and major age-assurance requirements within a year.

The agreement could therefore become a significant test of how far governments can force social media companies to redesign their platforms around child safety.