Meta agrees to pay $18 bn to settle Facebook and Instagram addiction trial

The deal ends a federal trial that could have exposed the social media giant to massive penalties and forced changes to Facebook and Instagram Meta has reached a settlement in a landmark lawsuit filed by multiple US states that accused it of deliberately designing Facebook and Instagram to addict children and teenagers.The social media giant has faced allegations of encouraging compulsive use among young people, misleading consumers about the safety of its platforms, and improperly collecting personal data from children under 13.Meta previously estimated that the claims could have exposed it to penalties of as much as $1.4 trillion, while the states were also seeking sweeping changes to how Facebook and Instagram operate.On Wednesday, the social media giant announced that it had reached an approximately $18 billion settlement with 52 attorneys general across US states, territories, and the District of Columbia, effectively ending the case without a jury ruling on the allegations and without Meta CEO Mark Zuckerberg taking the stand. Meta said the money would be paid out over the next ten years and earmarked to fund youth online safety initiatives, among other state priorities. The ...