Meta settles social media addiction case with California, other states for $16.7 billion

Meta and a coalition of state attorneys general have settled a major federal case centering on allegations that the social media giant misrepresented the extent of child-related mental health harms caused by apps like Facebook and Instagram. The settlement was revealed a court filing released Wednesday that details several requirements Meta must make to its apps as part of a proposed “consent judgement.” These include daily usage limits and “nighttime blocks” for teenagers that use the company’s apps like Facebook and Instagram, “enhanced age assurance measures” that would prevent children from using the apps, and making additional tools for parents and guardians. As part of the settlement, Meta agreed to pay $16.7 billion. The state of California could receive $1.5 billion to $2.1 billion if the court officially approves the settlement, according to an announcement by California attorney general Rob Bonta. Shares of the social media giant gained 5% during premarket trading after the news broke. Currently the share is down by around 1%.