Meta Settles US Social Media Addiction Case For USD 16.7 Billion

Meta has agreed to pay USD 16.7 billion to settle a federal case brought by California and other US states over allegations concerning the impact of Facebook and Instagram on children, CNBC reported.

The settlement, approved by a federal court in California, requires Meta to introduce changes including daily usage limits and nighttime restrictions for teenagers, stronger age-verification measures and additional parental controls. California could receive between USD 1.5 billion and USD 2.1 billion under the agreement, while Texas, which was not part of the group settlement, has agreed to a separate USD 1 billion payment.

Meta said the agreement involves about USD 18 billion in payments over 10 years, with participating states receiving around USD 12.7 billion. The company expects to record a legal expense of about USD 10 billion in the third quarter of 2026.

The settlement follows a 2023 lawsuit involving a coalition of state attorneys general.