Meta will pay 16.7 billion to close the trial on social media and minors

Meta and a coalition of state attorneys general have reached a settlement in a federal lawsuit in which the group was accused of downplaying the extent of harm to minors’ mental health related to the use of platforms such as Facebook and Instagram. The agreement was made known on Wednesday in a court document that sets out a series of obligations for Meta as part of a proposed “conciliation ruling”. The measures include daily usage limits, night blocks for teenagersmore rigorous age verification systems to prevent access to minors and new control tools for parents and guardians.

On an economic level, Meta would have committed to paying 16.7 billion dollars. California could receive in 1.5 and 2.1 billionif the agreement is formally approved by the court, as announced by the state Attorney General, Rob Bonta. In a separate statement, Meta instead indicated a total outlay of approximately 18 billion dollarsto be distributed in annual installments over ten years and intended to finance initiatives for the online safety of minors defined by the States. The group also plans to book in the third quarter of 2026 approximately $10 billion in legal fees related to the agreement and not previously included in the accounts.

The role of YouTube and TikTok

The agreement came during the second week of the ongoing trial in federal court in Oakland. The lawsuit was brought by the attorneys general of California, Colorado, New Jersey and Kentucky, representing a bipartisan coalition of 29 attorneys general, as part of a legal action initiated in 2023. In announcing the settlement, California Attorney General Rob Bonta, however, referred to a bipartisan coalition of 51 to the general manager involved in the final agreement.

According to Meta, to the Participating States they will go about 12.7 billion dollarsequal to 70% of the overall value of the agreement. The remaining 30%, equal to 5.3 billion dollarswill be paid only if also YouTubeowned by Google, e TikTok will introduce similar measures to those planned for Meta, including daily usage limits for minors, age verification systems and a night mode. The agreement also provides that Meta’s competitors pay an amount equivalent to that remaining 30%, divided equally between a contribution linked to YouTube and one linked to TikTok.

Mosseri’s testimony

Instagram chief Adam Mosseri testified Tuesday that he never asked employees to withhold information about child safety and products from him to protect themselves or mislead the public. Since the federal trial takes place in the state where Meta is based, California, and involves several states, the stakes for the company led by Mark Zuckerberg are particularly high.