What Happened
Meta has agreed to pay up to $18 billion to resolve a series of lawsuits in the United States. The legal action accused the company of designing Facebook and Instagram in ways that encouraged addictive use among children and teenagers while misleading consumers about platform safety. Meta has denied wrongdoing, but the settlement will bring significant changes to how young people use its services in the US.
The Timeline
On 28 August 2026, reporting described that New York could receive up to $1.15 billion from the Meta settlement regarding social media and children. The financial agreement resolves claims brought by most U.S. states and territories, which alleged that Meta deliberately built features designed to keep young users engaged for longer periods. These lawsuits also claimed the company failed to adequately protect children from harmful content and data practices.
Who Said What
Reuters reported that Meta could ultimately pay up to $18 billion over the next decade, with billions going to U.S. states and territories that pursued the case. Reuters also noted that some of the measures will be phased in over the coming months rather than appearing immediately. Furthermore, Reuters reported that the settlement does not require the company to dismantle the core systems that determine what users see in their feeds.
The Numbers That Matter
Under the agreement, Meta will introduce a default two-hour daily usage limit for young users on Facebook and Instagram. Access will also be restricted between midnight and 6am unless a parent gives consent, while push notifications will be disabled during school hours. The company must also strengthen age checks and make other changes aimed at reducing the amount of time teenagers spend on its platforms. Changes to how likes and reactions are displayed to teenagers are also part of the settlement.
Why This Matters
The most significant part of the settlement may be the changes to how teenagers use Facebook and Instagram, addressing one of the central arguments in the lawsuits: that social-media platforms can be engineered in ways that encourage compulsive use, particularly among younger users. The settlement is a U.S. agreement, which means Australian children are not automatically covered by the same court-enforced protections.
Australia has already taken a much tougher regulatory approach to children and social media than many countries, including introducing a world-first ban on social-media access for children under 16. Reuters noted that governments around the world are increasingly considering stronger controls over how young people interact with major social platforms.
Meta says protecting teenagers remains a priority and argues it has already introduced a range of safety tools for younger users. Even so, the financial scale of the agreement is extraordinary. The proposed agreement would limit how much time minors can spend on Facebook and Instagram and restrict nighttime access, notifications and other features.