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Meta settles US lawsuits with $18 billion over youth addiction claims

Facebook and Instagram parent company Meta has agreed to pay $18 billion to resolve multiple lawsuits filed by US states alleging the platforms knowingly designed features to addict young users. The settlement represents one of the largest penalties imposed on a technology company over child safety concerns.

LSN Sri Lanka · 27 August 2026

Meta settles US lawsuits with $18 billion over youth addiction claims

Meta Platforms Inc. has reached a settlement worth $18 billion to resolve dozens of lawsuits brought by US states and municipalities claiming the company deliberately engineered addictive features in Facebook and Instagram targeting children and teenagers.

The settlement follows years of litigation over Meta's social media algorithms and design practices. Legal complaints alleged that the technology giant prioritized user engagement metrics while downplaying internal research showing the platforms' harmful effects on young people's mental health, including increased rates of anxiety, depression, and body image issues.

Under the agreement, Meta will not admit wrongdoing but has committed to implementing additional safeguards for users under 18. The company has pledged to enhance parental controls, restrict targeted advertising to minors, and limit algorithmic recommendations for young users on its platforms.

The settlement applies to claims filed across multiple US jurisdictions and addresses broader concerns about how technology companies monitor and protect younger users. Mental health advocates and child safety organizations have previously raised concerns about social media's role in youth anxiety and self-harm, making this settlement significant in ongoing debates about technology regulation.

Meta, which also owns WhatsApp and Threads, faces continued scrutiny globally regarding youth protection policies and data privacy practices. The settlement comes amid ongoing legislative efforts in numerous countries, including discussions in South Asia, to establish stricter regulations for social media companies operating in digital spaces.