Instagram and Facebook’s parent company, Meta, has struck a deal with the US states currently suing the tech giant for intentionally designing its social media platforms to be addictive and harmful to children and teens. CEO Mark Zuckerberg and the company will avoid a high-stakes trial, whose consequences could have significantly affected how the tech industry operates.
The deal was approved by US Federal Judge Yvonne Gonzalez Rogers hours after it was initially filed. According to court filings, Meta could pay up to $16.68 billion to states and territories in the agreement. Reuters first reported the settlement on Wednesday.
Under the new rules, Meta will enforce default daily usage limits, including a 2-hour time limit for teens across Instagram and Facebook, new blocks from midnight to 6 a.m. and muted notifications during school hours, which can be overridden with a parent’s permission.
Stronger parental controls, more rigorous age-verification tech and limiting access to “extreme” beauty filters are also part of the deal. Teens won’t be able to see the total number of likes on their posts, either. They will also be able to turn off autoplay on videos, like Instagram Reels, and opt into a non-algorithmic feed. All of these features are popular recommendations that have been made for years by psychologists, tech experts and child-safety advocates. Some are already part of Instagram’s teen accounts, which were rolled out in 2024.
In a blog post, Meta said it will initially pay over $12 billion to participating states, in annual payments over a 10-year period, to fund child safety initiatives. If Snap, TikTok and YouTube join the agreement, Meta will pay an additional $5.3 billion, bringing the company’s total up to $18 billion. Meta said it expects to pay $10 billion in legal expenses in the third quarter.
“Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of difference for children and their families,” California Attorney General Rob Bonta, who helped lead the case, said in a statement Wednesday. The proposed agreement brings 47 states, the District of Columbia and US territories into the deal, not just the attorneys general who were party to the original lawsuit.
The settlement is ultimately less than 10% of Meta’s 2025 annual revenue ($201 billion), and it’s significantly less than the potential $200 billion penalty the states said would be likely during the early stages of the trial. It’s the proposed platform changes that will likely have the biggest impact on Meta.
“This is a historic settlement that will have a lasting impact, but we cannot truly protect all children and teens until these protections are required on every platform and are permanent – that’s something only Congress can do,” Sacha Haworth, executive director of The Tech Oversight Project, said in a statement.
In a blog post, Meta calls on TikTok and YouTube to join its efforts. “The framework we’ve negotiated will empower parents to easily manage how their children access our platforms… but this framework will only work if all our peers join us,” CJ Mahoney, Meta’s chief legal officer, told CNET. “Because teens move fluidly across dozens of apps, we need an industry-wide solution. We therefore call on our industry peers, TikTok and YouTube, to implement this new framework right away.
Not every state is party to the agreement, notably Florida. James Uthmeier, Florida’s attorney general, told CNET: “The payouts to the states are peanuts compared to the profound harms Meta’s profit-driven addictive features have inflicted on our children. This agreement is nothing more than a slap on the wrist for a trillion-dollar corporation that has already paid more to its lawyers than it will pay the states. We’ll see them at trial.”
New Mexico is also not part of the deal, nor is Texas. However, Texas Attorney General Ken Paxton announced on Wednesday that Meta will pay over $1 billion to remediate child safety concerns. Texas is taking TikTok to court later this year for similar reasons.
“We had hoped a nationwide settlement might echo the full strength of the protections New Mexico secured in court — including a direct ban on romantic and sexualized AI chatbot interactions with minors and stronger safeguards against adults targeting kids in private messages,” New Mexico Attorney General Raúl Torrez said in a statement. “But this settlement still represents real progress and adds momentum to finish the job of protecting kids online.”
Social media giants like Meta and Google-owned YouTube have been under intense scrutiny in recent years for how well (or poorly) they protect their youngest users. In two separate landmark cases preceding this one, Meta was ordered to pay $375 million to the state of New Mexico after a jury ruled the company enabled child exploitation online. Soon after, a Los Angeles court ordered Meta and Google to pay a combined $3 million in damages for similar claims. Meta is appealing both cases.
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