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Meta settles social media addiction case for $16.7 billion
CNBC • • general
Key Points:
- Meta has reached a settlement with a coalition of 51 state attorneys general over allegations that it misrepresented the mental health harms caused to children by apps like Facebook and Instagram, agreeing to pay approximately $16.7 billion.
- The settlement requires Meta to implement several changes, including daily usage limits, nighttime blocks for teenagers, enhanced age verification to prevent children from accessing the apps, and new parental control tools.
- California could receive between $1.5 billion and $2.1 billion from the settlement if approved by the court, with funds distributed over 10 years to support youth online safety initiatives.
- The settlement also ties payments from Meta's rivals, YouTube and TikTok, to similar app safety changes, with a total of $5.3 billion contingent on their compliance.
- Meta's shares rose 5% in premarket trading following the announcement, and the company expects to record a legal expense of around $10 billion in Q3 2026 related to the agreement.
