Meta reaches settlement in landmark teen social media trial

Summary

Meta announced a landmark settlement with 48 state attorneys general worth up to $17 billion over ten years, or $18 billion including a separate Texas settlement. The deal includes teen product changes such as daily time limits, night blocks, muted school notifications, hidden likes, and age assurance. Meta shares rose about 1% as investors saw the cost as modest relative to the up to $200 billion the states had sought. A conditional reduction would lower Meta's payment if YouTube and TikTok adopt similar teen protections.

• Meta settled a multi-state social media addiction case for up to $17 billion over ten years.
• Meta says the total payout including Texas is up to $18 billion and expects a $10 billion legal expense in Q3.
• The settlement includes teen protections such as a two-hour daily time limit, night block, muted school notifications, hidden likes, and age assurance.
• Meta's payment can be reduced by $5.3 billion if YouTube and TikTok adopt similar teen restrictions.
• Meta shares rose about 1% as the settlement was viewed as manageable against the $200 billion the states had sought.
• California AG Rob Bonta called the changes real, transparent, and enforceable protections for Facebook and Instagram users.