Meta to pay $16.7 billion in US settlement over teen safety concerns

Meta Platforms has reached a historic settlement with a coalition of US states, agreeing to pay $16.7 billion to resolve claims that the company's social media platforms—Facebook and Instagram—caused psychological harm to young users and failed to protect them from exploitation and abuse.

The settlement stems from investigations by state attorneys general who alleged that Meta knowingly designed addictive features targeting teenagers while downplaying documented harms to adolescent mental health, including increased rates of anxiety, depression, and body image issues. Prosecutors further contended the company inadequately safeguarded minors from predatory behaviour and cyberbullying on its platforms.

Under the agreement, Meta must implement significant changes to its platforms' operations and safety practices. These include strengthening age verification systems, enhancing privacy protections for young users, limiting data collection practices, and improving parental controls. The company will also establish a dedicated fund to support teen mental health initiatives and research.

The settlement underscores mounting regulatory pressure on major technology companies regarding child safety and online harms. Meta joins a growing list of tech giants facing substantial penalties and operational restrictions as governments worldwide intensify oversight of social media platforms' effects on vulnerable users, particularly children and adolescents.