Meta has agreed to pay up to $18 billion over the next decade and introduce new restrictions on teenage use of Facebook and Instagram.
The agreement settles claims brought by almost all US states that Meta designed its platforms to keep young users engaged and failed to properly protect children.
The settlement will also change how teenagers use the two platforms.
Meta will limit teenagers to two hours of daily use across Facebook and Instagram. It will also block access from midnight to 6 a.m. unless a parent gives permission.
The company will mute most push notifications during school hours from 8 a.m. to 3 p.m.
What will change for teenagers?
The new limits are designed to reduce the amount of time teenagers spend on Facebook and Instagram.
Meta will also increase measures to stop children from accessing age-restricted content.
Teenagers will receive prompts after periods of continuous use. The company will also strengthen age checks to identify accounts that may belong to children under 13.
The main settlement covers 47 states, Washington, D.C. and several US territories. Texas reached a separate agreement worth more than $1 billion.
Meta’s main settlement provides up to about $17.1 billion, while the combined agreements could take the total close to $18 billion.
Meta will make about $12.7 billion in guaranteed payments. Another $5 billion depends on whether TikTok and YouTube adopt similar protections.
Why does this matter to the social media business?
The settlement could change how large social media companies design products for teenagers.
Meta will still be allowed to use personalised recommendations and targeted advertising. However, the new limits will reduce how often teenagers can use its platforms.
Meta has also asked TikTok and YouTube to adopt similar protections.
The company says the changes will work better if teenagers face similar rules across the apps they use.
The financial cost is also large.
Meta expects to record about a $10 billion legal expense in the third quarter of 2026 because of the agreement.
The settlement also includes $459 million to resolve separate state privacy claims linked to the Cambridge Analytica scandal.
Meta denied wrongdoing in agreeing to the settlement.
The deal could now influence thousands of other lawsuits involving social media companies and children in the US.
For Meta, the immediate outcome is clear: a large financial payment and tighter rules for teenage users across Facebook and Instagram.
Last modified: August 27, 2026
