Meta closes billion-dollar deal to end lawsuits in the US

Mark Zuckerberg’s company agreed to pay a maximum amount of US$18 billion (to be disbursed over ten years) and implement changes for child and adolescent users in the country, including daily usage limits, nighttime blocks, muted notifications during school hours and new controls for parents.

According to information from Reuters, a trial had begun last week in California to deliberate on actions filed by 29 American states, in which Meta was accused of having designed Facebook and Instagram to addict children, deceiving consumers about the safety of these platforms and improperly collecting personal data from children who use them.

Throughout the proceedings, Meta stated that it seeks to protect children and refuted the allegation that its platforms have addictive potential, claiming that “social media addiction” would not be a recognized psychiatric condition.

“While this is an important step, the fact is that teens move freely between dozens of apps daily. All platforms should empower parents and support teens by adopting the same measures, as we know that when young people are restricted in one app, they simply migrate to another,” Meta said in a statement after the deal was closed.

“For meaningful progress to occur, we urge TikTok and YouTube to join us and state attorneys general in adopting this new standard, ensuring that teens use social media in a healthy and responsible way,” the company added.

According to Reuters, in a petition filed before the trial began, Meta had reported that four states that filed the lawsuits, California, Colorado, Kentucky and New Jersey, were seeking up to $1.4 trillion in penalties. States had suggested the value would be closer to US$200 billion.

Of the final amount of US$18 billion, Meta reported that 30% will be released only after two conditions are met: that YouTube and TikTok implement a one-hour daily limit for children, night mode and age verification measures; and that both platforms pay an amount equivalent to this 30% installment.

The amounts will be paid by Meta to the states in annual installments and this money can be used to finance online safety initiatives for young people, the company said.