Kathmandu— Meta has agreed to a landmark $18 billion settlement in a US federal case alleging it endangered children by designing addictive platforms, forcing the social media giant to implement new safety features on Instagram and Facebook. The company faced numerous lawsuits this year claiming its platforms were deliberately designed to be addictive and harmful to young users, resulting in losses in prior cases and significant damages awarded. As part of the settlement reached with 48 US states on Wednesday, Meta will introduce changes including two-hour daily usage limits, night curfews, and enhanced parental controls for users under 18. The agreement is expected to have a global impact as other countries also take regulatory action against social media companies.

Lawsuit Allegations

Twenty-nine US states sued Meta, accusing it of designing platforms that “encourage addictive behaviour,” failing to verify user ages, and inadequately safeguarding against harmful content. The attorneys general demanded changes such as parental verification, algorithm adjustments, removal of appearance-altering filters, restrictions on multiple accounts, and the elimination of disappearing messages. The lawsuit also claimed violations of the Children’s Online Privacy Protection Act by collecting data from children under 13 without proper consent. Meta previously lost cases brought on similar grounds, including a multimillion-dollar judgment in February and a $375 million jury award in March, followed by an additional $567 million order last month.

Settlement Terms and Payouts

Meta denied wrongdoing but agreed to the settlement after evidence suggested its products harmed children’s mental health. The total payout of $16.7 billion will be distributed over ten years among 47 states, Washington DC, Puerto Rico, American Samoa, and the Northern Mariana Islands. California is set to receive $2.2 billion, while New York could get $1.1 billion, and Texas reached a separate settlement exceeding $1 billion. Some states will allocate funds to mental health services for children. However, the agreement does not require Meta to discontinue personalized recommendations or targeted advertising, nor does it address all problematic content.

Changes to Instagram and Facebook

Under the agreement, users under 18 will face a two-hour daily usage limit with a night curfew from midnight to 6am. Meta will also hide likes and reactions on children’s accounts, ban cosmetic procedure filters by default (requiring parental consent to override), and disable most push notifications during school hours. Parents will gain increased ability to monitor and adjust account settings, receive information about platform usage and connections, and be notified of new messages between teens and adults, as well as searches for sensitive topics like suicide or self-harm. Meta also committed to improving age verification technology with regular audits.

Global Regulatory Pressure

Critics acknowledge the settlement represents landmark changes from the world’s largest social media company, but some argue it doesn't go far enough in addressing addictive algorithms. Sacha Haworth, executive director of The Tech Oversight Project, said the deal is a “historic settlement” but that truly protecting children requires congressional action. Ella Bradshaw, policy officer for child safety online at the NSPCC, welcomed the changes to rein in addictive design features, but noted gaps remain regarding disappearing messages and livestreaming. Other countries are also increasing regulatory pressure on Meta; the European Union is pursuing legal cases related to antitrust rules and child safety under the Digital Services Act, while the UK plans a ban on social media for those under 16.

While these changes will initially apply to users in the US, Meta faces growing regulatory pressure globally to implement similar measures worldwide. The effectiveness of these changes in protecting young users remains to be seen.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.