Kathmandu— Meta Platforms has agreed to settle a lawsuit alleging that Facebook and Instagram were designed to addict children, misled consumers about safety protocols, and improperly collected data from young users. The agreement, reached on Wednesday, involves a potential payment of up to $16.68 billion and requires significant changes to the platforms’ features nationwide. The case was brought by a coalition of 29 US states and had been expected to last six weeks before Meta opted for a settlement. While denying any wrongdoing, Meta will implement measures like daily usage limits and nighttime blocks aimed at protecting younger users.

Settlement Details and Financial Impact

The $16.68 billion settlement resolves claims brought in the United States case, championed by a coalition of 29 states. The initial potential fines faced by Meta totaled up to $1.4 trillion, while the coalition had sought a penalty closer to $200 billion. Shares of Meta experienced a slight dip in early trading on Wall Street, falling 0.1 percent after the market opened.

Platform Changes for Young Users

As part of the settlement, Meta will implement several changes to Facebook and Instagram designed to protect younger users. These include daily usage limits of two hours for those under the age of 18, which can only be overridden by parental consent. The company also agreed to institute nighttime blocks on the platforms. Furthermore, Meta is committed to identifying and removing users under the age of 13 from its services.

Previous Legal Challenges

This settlement follows a series of similar legal challenges for Meta. In March, a jury in New Mexico ordered the company to pay $375 million in damages, followed by another $567 million award in August as part of a comparable case.

The settlement still requires court approval before it is finalized. It represents a significant outcome in ongoing legal scrutiny surrounding social media’s impact on youth mental health and data privacy.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.