Meta Platforms has agreed to pay up to $18 billion over 10 years to settle lawsuits from nearly all U.S. states. This was reported by Qazaqyia.kz citing Kursiv Media.

Authorities accused the company of causing addiction among children through Facebook and Instagram, and of hiding the risks of its platforms. The agreement concludes a federal trial that began on August 18.

Details of the Lawsuit

California, Colorado, Kentucky, and New Jersey planned to seek about $200 billion in civil penalties. Meta did not admit wrongdoing but agreed to pay compensation to states and change rules for teenagers' use of its platforms.

"The goal of this case was to protect our children," said Colorado Attorney General Phil Weiser.

New Restrictions

Over the next decade, Meta must limit teenagers' use of Facebook and Instagram to two hours per day. Without parental consent, minors will also be barred from using the platforms from midnight to 6:00 a.m. Restrictions could become stricter if Snapchat, TikTok, and YouTube introduce similar measures.

However, the agreement does not require Meta to abandon personalized recommendations and targeted advertising. It also does not affect content that could negatively impact teenagers' perception of their own appearance.

Company Response

The company stated that the safety of young users remains one of its top priorities. "We want to do the right thing for parents and teens," Meta said.

Distribution of Payments

The main part of the agreement provides for payments of up to $16.7 billion to 47 states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands. California could receive about $2.2 billion, and New York $1.1 billion. Texas reached a separate agreement for more than $1 billion.

Meta guaranteed payment of about $12.7 billion. An additional $5 billion will be transferred if Snap, TikTok, and YouTube also implement similar child protection measures.

Use of Funds

In some states, the funds will be directed to mental health support programs for children. In other regions, the money will go to the general budget.

Meta will also pay $459 million to settle claims related to the Cambridge Analytica scandal. The British consulting firm obtained personal data of millions of Facebook users without permission.