Meta has reached a settlement with 48 U.S. states and Washington, D.C., agreeing to pay up to $18 billion to resolve allegations that its platforms contributed to teen addiction and harmed mental health, according to ETNet.
Under the agreement, Instagram will also impose default daily usage limits for teenage users and a nighttime shutdown feature. The settlement amount ranks among the largest single corporate payouts, though it is far below the $1.4 trillion initially sought by the states.
Of the settlement, $5 billion and the strictest restriction, a one-hour daily usage cap, will only take effect after Meta and Instagram's main competitors in the teen user market reach similar agreements.