Meta reaches landmark settlement

Summary

CNBC's Julia Boorstin reports Meta's landmark settlement with 48 states, worth up to $17 billion over ten years and up to $18 billion including a separate Texas settlement. Meta will implement teen-safety product changes such as time limits, night blocks, muted school notifications, hidden likes, and age assurance. Meta says these changes will not meaningfully affect revenue because teens generate less than 1% of revenue, though it expects a $10 billion Q3 legal expense.

• Meta settled a child safety case with 48 states for up to $17 billion over ten years, or up to $18 billion including Texas.
• Product changes include a two-hour teen daily time limit, default night block, muted school notifications, hidden likes, and age assurance.
• Meta says teens generate less than 1% of platform revenue and the changes should not meaningfully impact top or bottom line.
• Meta expects to accrue a $10 billion legal expense in Q3 from the agreement.
• Meta says it is less financially exposed to teen usage than YouTube and TikTok.
• California Attorney General Rob Bonta called the settlement real, transparent, and enforceable protection for children.