Meta Platforms Inc. has reached an agreement to pay up to $16.7 billion in a settlement with 29 state attorneys general. The lawsuit alleged that the company's social media platforms, Instagram and Facebook, were designed to be addictive to children.
The settlement, announced Wednesday, includes a commitment from Meta to enact significant design changes across its apps. These modifications are intended to bolster protections for underage users and will feature daily usage limits, "nighttime blocks" to discourage late-night use, and enhanced age verification measures to prevent minors from accessing Facebook and Instagram.
The agreement comes as Meta was facing a landmark trial in California federal court. Both Meta CEO Mark Zuckerberg and Head of Instagram Adam Mosseri were slated to testify in the proceedings. Meta shares saw a 4% increase in premarket trading following the news of the settlement.