Meta Agrees to Pay Up to $16.7 Billion in Social Media Case

Meta Platforms Inc. has agreed to pay up to $16.7 billion to settle a landmark social media case with multiple US states, according to a court filing Wednesday. The deal requires the company to put new guardrails on its platforms such as Facebook and Instagram, including restricting how much time youths can scroll and preventing them from switching off certain safety settings without parental consent. A judge needs to sign off on the agreement. In the filing, Meta denies the allegations against it. The states had alleged violations of state consumer protection and federal privacy laws — which carry fines that add up quickly when multiplied by millions of young Instagram and Facebook users. “This Agreement is entered into for settlement purposes only and does not constitute an admission by Meta of any liability, wrongdoing, or violation of any local, state, federal, or international law,” according to the filing. Meta, States Have Discussed Settling Teen Social Media Case Meta didn’t immediately respond to a request for comment. The accord comes in the second week of a jury trial in federal court in Oakland, California, that posed enormous risk for Meta. The top legal officers of 29 states were seeking not only massive financial penalties on behalf of the public, but also court orders that could force the company to change how it operates its platforms. Bloomberg reported late Tuesday that the parties had discussed a possible mid-trial settlement. Meta shares were down about 0.8% at 9:46 a.m. in New York after rising as much as 4.1% after trading opened. Meta Stares Down Trillion-Dollar Threat as Landmark Social Media Trial Begins The planned settlement also includes the appointment of an independent auditor to oversee compliance, who can issue their own recommendations and report findings to the states. The agreement would also require Meta to enhance its age verification tools to better identify young users on the app. Access to features like viewing the number of likes on a post or beauty filters would be restricted for teens. “Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months,” California Attorney General Rob Bonta said in a statement. Photo: The Facebook logo, shot through glass toy, arranged on a smartphone in Sydney, Australia, on Wednesday, Dec. 3, 2025. Photographer: Brent Lewin/Bloomberg Topics Digital Marketing Was this article valuable? Here are more articles you may enjoy.