Meta Platforms, the owner of Facebook and Instagram, on Wednesday agreed to settle a wide-ranging social media addiction lawsuit with the state of California and a number of other states.
A court filing indicates that Meta agreed to pay up to $16.68 billion to bring the case to an end. The filing also says that the company “denies the allegations against it and that it has any liability to the Plaintiffs,” which are a collection of 29 states.
As part of the deal, “Meta commits to establishing daily limits and blocks on nighttime use for teenage users” as well as “enhanced age assurance measures to prevent children from accessing the platform, or age restricted content available on the platform,” the court filing also says.
The settlement also requires the company to create “additional tools to help parents and guardians to protect their children online.”
The announced settlement will require the approval of a judge. Meta shares rose 4% in pre-market trading after the announcement.
The agreement comes one day after Instagram chief Adam Mosseri took the stand in California.
In the case, attorneys general from states including California, Colorado, Kentucky and New Jersey accused Meta of harming children with its social media products, which they argued were designed to be addictive. They also accused Meta of violating federal privacy and consumer protection laws.
The tech company’s platforms, which include Facebook and Instagram, helped stoke a national mental health crisis among teens and kids, according to the states.
Meta, meanwhile, maintained a position that the states were cherry-picking certain features and ignoring the safety tools it has built for young users, including teen accounts, which automatically go private, in addition to other tools like time-limit reminders, parental supervision capabilities and restrictions on who can contact teens and what content they can see.
The trial was just one of several Meta has faced with similar claims. In March, a New Mexico jury and judge fined Meta over $900 million after the state’s attorney general argued that it’s platforms created a public nuisance.
In California, a state court found that Meta and Google were liable after a young woman said the tech companies, among others, contributed to her deteriorated mental health.
Meta did not immediately respond to a request for comment.
About the Author
