Meta settles US child safety claims in 18 billion dollar deal

Meta has agreed to pay up to 18 billion dollars, equivalent to 13.3 billion pounds, to settle legal claims brought by nearly every US state regarding the impact of its platforms on children. The agreement, which covers the District of Columbia and three US territories, includes a series of new safety measures for Facebook and Instagram. While the company has not admitted to any wrongdoing, it has committed to implementing time limits, screen time warnings, and enhanced parental controls. These changes are currently applicable only to users in the United States but may establish a precedent that influences global standards for social media regulation.

The settlement is significantly lower than the hundreds of billions of dollars that had been speculated prior to the trial. It represents a small fraction of Meta’s annual revenue of 201 billion dollars from the previous year, with the payout scheduled to be distributed over a decade. The funds will be shared among the complainants, with individual states receiving hundreds of millions of dollars each. New York state, for example, is expected to receive at least 819 million dollars, which its attorney general stated will be directed towards mental health services and educational programmes to mitigate the harm caused by unhealthy social media use among young people. Florida rejected the settlement, while New Mexico was excluded from the offer following a previous court case that resulted in a 942 million dollar fine.

A notable aspect of the deal is that 30 percent of the total payment is contingent on TikTok and YouTube agreeing to implement similar child safety measures. Meta has publicly called on these competitors, as well as Snapchat, to adopt comparable restrictions. The company argues that a level playing field is necessary to prevent users from migrating to rival platforms that offer fewer restrictions. However, YouTube, Snapchat, and TikTok have maintained that they already possess robust safety policies and have not yet made public comments regarding the new demands. Industry observers suggest that while Meta may be attempting to demonstrate cooperation to avoid stricter bans, other tech firms may be reluctant to adopt these measures voluntarily without legal compulsion.

The UK government has stated that it is following the developments closely. Although the United Kingdom has its own Online Safety Act, which restricts the content young people can access, the government has announced an outright social media ban for under-16s to take effect in 2027. This approach differs from the US settlement, where children are not banned from accessing Facebook and Instagram but are subject to overnight access restrictions and usage limits. Former senior figures at Meta and TikTok have suggested that the US agreement may empower the UK to request similar restrictions, noting that tech platforms typically only implement changes when compelled to do so. One former Meta director indicated that the company likely intends to roll out many of these features globally to demonstrate that a complete ban is unnecessary.

Critics and campaigners argue that the settlement does not go far enough. Ellen Roome, whose son died after participating in an online challenge, stated that while time limits are a start, they do not address the harmful content on the platforms. She is part of a group of parents suing TikTok in the US over child safety. Arturo Béjar, a former Meta whistleblower and witness in the trial, compared the situation to the tobacco industry, noting that companies can continue to sell harmful products even after being found liable. Conversely, Alexa Knight from the Mental Health Foundation argued that manufacturers should be expected to ensure their products are safe before release, particularly when children are involved. The settlement also mandates that Meta use young people’s personal data solely to estimate their age, with users under 13 being removed from the platforms and those aged 13 to 17 subject to additional protections. Meta has pledged to strengthen its age assurance technology, though privacy campaigners have raised concerns that such verification methods may require the collection of even more personal data.