Meta has agreed to pay $17 billion and implement sweeping changes to its social media platforms as part of a landmark settlement with California, Colorado, Kentucky, and New Jersey, resolving a multistate lawsuit over alleged harm to children from social media use.

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The agreement, announced by state officials, is one of the largest settlements in technology industry history. It requires Meta, the parent company of Facebook and Instagram, to introduce strict limits on how teens can use its platforms. Officials say these measures are designed to reduce risks to children’s health and safety, addressing growing concerns about the impact of social media on young people.

The lawsuit, People of the State of California, et al. v. Meta Platforms, Inc., was filed in Oakland, California. Plaintiffs initially sought $1.4 trillion in damages before reaching the settlement. The case is part of a broader national debate over the responsibilities of tech companies to protect minors and the potential harms associated with social media use among children and adolescents.

Settlement Terms and Restrictions

Under the terms of the settlement, Meta will enforce a range of new restrictions for users under 18. These include a daily limit of two hours of social media use on Facebook and Instagram. The company will also block access for minors between midnight and 6 a.m., aiming to prevent late-night usage that experts say can disrupt sleep and affect mental health.

Additional measures include limiting notifications during school hours, which is intended to reduce distractions and help students focus on their education. Meta will also ban certain features, such as plastic surgery filters, which have been criticized for promoting unrealistic beauty standards and potentially harming self-esteem among teens.

Teens will also have the option to choose a chronological feed, rather than one driven by algorithms. This change is intended to give young users more control over the content they see and reduce the influence of recommendation algorithms, which have been linked to addictive behaviors and exposure to harmful material.

California Attorney General Rob Bonta, in a press release, described the settlement as a significant step toward making social media safer for children. "Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms—and will do it within months. We are talking about time limits, stopping notifications during school, a block on the app during critical overnight hours, bans on plastic surgery filters, and so much more," Bonta said.

Meta’s Chief Legal Officer C.J. Mahoney said the company’s new commitments, including time limits and night mode features, set a new standard for the industry. "The framework we’ve negotiated will empower parents to easily manage how their children access our platforms," Mahoney said in a statement.

Industry-Wide Implications

Meta is urging other major social media companies, including TikTok, Snap, and YouTube, to adopt similar restrictions. The company argues that a unified approach is necessary because teens often use multiple platforms and may simply switch apps if restrictions are imposed on only one.

"Because teens move fluidly across dozens of apps, we need an industry-wide solution," Mahoney said, calling on competitors to join Meta in implementing the new framework. In a letter cited by Axios, Meta stated, "All platforms should empower parents and support teens in these ways because we know that when teens are restricted on one app, they simply move to another. For meaningful progress to happen, we urge our peers to join us."

The settlement is expected to influence how other tech companies approach youth safety and may serve as a model for future regulation. State officials have indicated that the agreement could pave the way for broader industry reforms, especially as lawmakers and regulators in several states continue to scrutinize the effects of social media on children and adolescents.

Broader Context and Reactions

The settlement comes amid mounting scrutiny of social media’s effects on children and adolescents. Lawmakers and regulators in several states have been pushing for tighter controls, citing concerns about mental health, privacy, and exposure to harmful content. The agreement is seen by state officials as a model for future regulation and by Meta as a step toward industry self-regulation.

Critics have argued that tech companies have not done enough to address the risks of social media addiction and exposure to harmful content among minors. While Meta has emphasized its historical efforts to protect young users, the company also maintains that the new measures will be most effective if adopted across the industry. As of the settlement announcement, there was no immediate response from TikTok, Snap, or YouTube regarding whether they would implement similar changes.

The full settlement agreement, which details the new requirements and restrictions, is available through the California Attorney General’s office.