Meta to pay up to $18 billion and limit teen use of Facebook, Instagram

Meta Platforms Inc. agreed on Wednesday to pay up to $18 billion over the next ten years and to impose strict limits on how teenagers can use Facebook and Instagram. The settlement, reached with nearly all U.S. states, resolves claims that the company designed its social‑media services to be addictive to children and misrepresented their safety to the public.

Under the agreement, Meta will fund a multi‑state program to support research, education and mental‑health services for youth, while also implementing age‑verification tools, daily usage caps and reduced algorithmic content for users under 18. The deal concludes a federal trial that examined allegations that Meta’s platforms caused psychological harm to minors and that the firm concealed those risks from parents, educators and regulators.

The settlement marks the largest consumer‑protection agreement in the tech sector to date and signals heightened regulatory scrutiny of social‑media companies. By committing substantial financial resources and operational changes, Meta aims to address state‑level concerns and avoid further litigation while reshaping its approach to teenage users.