Mothers of children who allegedly died from impacts of social media during a protest outside the Ronald V. Dellums Federal Building & U.S. Courthouse in Oakland, California, on Tuesday, August 18, 2026.
Photo: David Paul Morris/Bloomberg/Getty Images
Meta, the owner of Facebook and Instagram, has agreed to pay up to $17 billion in penalties to a coalition of states to settle the landmark federal case against it that alleged the tech giant knowingly adopted features on its social-media platforms that were harmful to children and teenage users. The surprise move means that Meta will avoid a California jury that could have imposed even harsher penalties on the embattled company, though it still faces a bevy of other lawsuits from states and individuals. Meta has already lost two cases in state courts this year, one of which centered on a similar argument — that Meta’s design features caused harm to children — to the federal case’s.
A Wednesday court filing laid out the terms of the agreement and noted that Meta “denies the allegations against it and that it has any liability” toward the 47 states, the District of Columbia, or other territories named in the lawsuit. The settlement came as the trial — led by attorneys general in California, Colorado, Kentucky, and New Jersey— was set to enter its second week in California federal court. The agreement is subject to approval of a federal judge who is expected to sign off.
“Alongside a bipartisan coalition of my colleagues, I am proud to deliver this settlement that addresses the concerns at the core of our lawsuit and institutes real change, real transparency, and real enforceable protections for children on Facebook and Instagram — right now, no more waiting,” California attorney general Rob Bonta said in a statement.
As part of the settlement, Meta will implement new limits on its social-media platforms instead to reduce harm to teen users, such as restrictions on usage. These include blocking access to Meta sites from 12 a.m. to 6 a.m. and enforcing a two-hour limit on its platforms, excluding time spent watching longform content or messaging. In addition, Facebook and Instagram will disable push notifications for teens from 10 p.m. to 7 a.m., as well as during school hours which the settlement defines as between 8 a.m. and 3 p.m. on Monday through Friday from August 15 to June 15. These features can be modified only by a user’s parent. The company will also implement what are known as “productive pauses” at intervals of 15 minutes, 60 minutes, or 90 minutes of continuous usage.
In addition, Meta will prevent teen users from seeing the number of reactions and likes on a post, block them from applying “Cosmetic Procedure Filters” to their photos, and provide the option of utilizing a non-personalized feed that isn’t dictated by an algorithm intended to funnel them content.
Meta will also be subject to an independent auditor, agreed upon by both the company and the states, which will be tasked with evaluating how Meta is implementing the agreement terms and filing reports on their findings.
Meta confirmed that a settlement—which will be distributed annually over a ten-year period—-was reached in a press release, noting that $5.3 billion, or 30 percent of the agreed-upon payment, is contingent upon its competitors YouTube and TikTok implementing similar features as well as matching that figure with a payment of their own. Per the New York Times, the company intends to follow up their push by authoring an open letter to YouTube and TikTok that will be published in full-page ads in the Times, the Washington Post and the Los Angeles Times.
Meta chief legal officer C.J. Mahoney said he was pleased to announce news of the settlement and urged other companies to undertake similar measures on their platforms, writing that an “industry-wide solution” is needed. “We therefore call on our industry peers, TikTok and YouTube, to implement this new framework, right away. As a parent, I’m proud of both the work Meta has done to protect kids historically, and of this new groundbreaking agreement. But its success depends on all other social media platforms following Meta’s lead,” Mahoney wrote.
Sign Up for the Intelligencer Newsletter
Daily news about the politics, business, and technology shaping our world.
Vox Media, LLC Terms and Privacy Notice