Meta agrees to settle case with US attorneys general for $16.7 billion
Meta has agreed to pay $16.7 billion as part of a settlement in a federal case over allegations of fostering social media addiction. The agreement was reached with California Attorney General Rob Bonta and a bipartisan group of 51 attorneys general from US states and territories.
As ECNS reports, a federal court in Oakland, California, approved the agreement on Wednesday. Under it, Meta must change the operation of Facebook and Instagram: introduce daily usage limits and nighttime restrictions for teenagers, strengthen age-verification mechanisms, and provide additional tools for parents and guardians.
Payment terms
According to Meta, the states participating in the settlement are to receive approximately $12.7 billion over 10 years. They could potentially receive another $5.3 billion from the company’s competitors, including Google’s YouTube and TikTok, if they agree to introduce similar measures for minors, including daily limits and age-verification mechanisms.
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Texas did not join the group settlement but separately agreed to a $1 billion payment. Florida Attorney General James Uthmeier criticized the amount of the agreement, calling it a victory for Meta. He said Florida would continue its own lawsuit against the company.
Other lawsuits
Bonta stressed that the agreement does not end other legal proceedings involving Meta. According to the source, consolidated lawsuits by individuals claiming harm remain pending against the company, as does a separate federal case involving school districts across the country.
Representatives of school districts said they intend to continue their legal battle not only against Meta, but also against TikTok, Snap, and YouTube. TD Cowen analysts believe the settlement partly reduces legal pressure on Meta shares, but the company may still face significant civil liability in unresolved lawsuits brought by individuals and school districts.
