Meta to Pay $12.7 Billion Over 10 Years as States Settle Social Media Lawsuit
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This week, Meta announced new restrictions on its platforms - which include Instagram, Facebook and Whatsapp - as part of an $18bn (£13.25bn) settlement with US states in a lawsuit on social media's effects on children.
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CNBCIn a major case between Meta and 52 attorneys general across the U.S. alleging the social media giant knowingly designed products that were harmful and addictive to kids, the two sides settled on Wednesday, with the Facebook and Instagram parent company agreeing to pay about $17 billion. It's one of multiple trials related to alleged harms to young users that Meta has faced this year alone.
FortunePlus, several social media CEOs have publicly pushed back on claims their platforms are harmful. Mosseri testified earlier this year in a trial against its parent company, Meta, social media overuse does not constitute “clinical addiction.” Meta this week reached a $17 billion settlement in the suit brought against it by 47 states and the District of Columbia and agreed to change its platforms to limit how long teenagers can use them for and to ban certain features. The company did not admit to wrongdoing.
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Meta said it would only pay 70% of the settlement, or around $12.7 billion to the states over a period of 10-years. The remaining $5.3 billion is conditional on the company's rivals TikTok and Alphabet's YouTube also making similar changes to their apps for younger users.
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BBC BusinessPublished Meta's $18bn (£13.3bn) settlement with nearly every US state is about more than money.
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At the same time as announcing the settlement, Meta called on TikTok and YouTube to bring in the same measures.
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CNBC"We are suing TikTok now so we are looking to ensure that they adopt the similar practices and commitments that Meta did, and we are very interested in Snap and YouTube as well," Bonta said.
3 details only one outlet reported
Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 CNBC Meta's watershed social media trial just wrapped up in California, but now attention is shifting to the wider industry with TikTok, YouTube and Snap next on the firing line.
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02 Fortune Despite building an increasingly screen-focused world, tech billionaires and executives are keeping their own children away from the tech they helped create.
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03 BBC Business Published For Elizabeth Cardner, a mother of two girls in Houston, Texas, Meta's new limits on how teenagers can use its platforms are a welcome sign that more people are aware of social media's potential dangers.
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