US teen addiction prompts Meta to make changes, pay up to $18bn to settle lawsuit
Meta has agreed to pay up to $18 billion and implement sweeping changes to its platforms to settle a landmark lawsuit over teen addiction and the alleged harm its apps cause to children.
Meta, the parent company of Facebook and Instagram, agreed on Wednesday to the massive payout with US states and territories, ending a sprawling legal battle that claimed its platforms severely damaged children's mental health.
Under the terms of the settlement, which was approved by the presiding judge, Meta will pay 48 states, the District of Columbia, and three US territories up to $18 billion over the next 10 years.
In addition to the financial penalty, Meta is required to make significant operational changes to its Instagram and Facebook apps aimed at better protecting minors online.
These mandated changes include default daily time limits and nighttime blocks to restrict late-night scrolling.
Despite the historic payout and operational mandates, Meta denied any wrongdoing as part of the settlement agreement.
During the litigation, the tech giant had argued that the states were simply chasing an "outlandish payout" from a highly successful company.
Mark Zuckerberg, 42, remains the founder, chairman, and CEO of the empire he launched in 2004. According to Forbes, his estimated net worth stood at $220 billion as of December 2025.
The settlement comes as officials and regulators worldwide increasingly argue that social media platforms are inflicting serious damage on youth.
"This is a major moment to clean up an industry that has been hurting our kids," California Attorney General Rob Bonta said in a statement following the agreement.
The US settlement aligns with a growing global legislative push to protect minors online. Earlier this week, New Zealand introduced a bill seeking to ban children under 16 from using social media.
New Zealand Prime Minister Christopher Luxon said the platforms expose youth to "harmful content, addictive technology, and pressures they are not equipped to deal with," though several political parties have indicated they will vote against the measure.
A similar ban was introduced in Australia last year, officially prohibiting children under 16 from accessing major social media platforms, including Facebook, Instagram, YouTube, Snapchat, TikTok, and X.
The UK and Greece are also reportedly set to introduce similar age-based restrictions next year.
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