Meta has agreed to a landmark $18bn settlement in a major US federal case accusing it of endangering children, the terms of which will force the social media giant to introduce new safety features to platforms including Instagram and Facebook.

The social media giant has faced an avalanche of legal cases against it this year, mostly arguing that it deliberately designed its platforms to be addictive and that they have harmed children. It has already lost two of these and been forced to pay damages.

Under the agreement, child users under the age of 18 will see a slew of changes to their Facebook and Instagram accounts, ranging from night curfews to two-hour usage limits, which Meta must implement as part of the settlement reached on Wednesday with 48 US states.

The agreement could have a global ripple effect as several countries around the world are already taking regulatory action against Meta and other social media companies over their platforms.

So, what is in the settlement Meta has reached in the United States, and how will Instagram and Facebook change for users?

What was the lawsuit about?

Twenty-nine US states sued Meta, accusing it of designing its platforms in ways that “encourage addictive behaviour, fail to verify users’ ages, encourage adolescents to bypass parental controls, and inadequately safeguard against harmful content and/or intentionally amplify harmful and exploitative content”, according to filings at the Court of Appeal in California.

The first four of the states that originally filed their federal lawsuit against Meta in 2023 – California, Kentucky, Colorado and New Jersey – began their cases in a California federal trial last week.

The attorneys general bringing the case also asked the court to order that changes be made to Meta’s platforms to protect young social media users. In particular, they demanded that Meta introduce a process of parental verification for teenage users; change its “dopamine-manipulating” algorithms; remove image filters for users’ personal images; forbid the creation of multiple accounts; and end “disappearing” messages and posts.

The lawsuit also alleged Meta had violated the Children’s Online Privacy Protection Act by collecting, ⁠retaining and using personal data from children under 13 without proper parental consent.

In February this year, Meta lost a multimillion-dollar case brought on similar grounds by a young woman referred to as KGM in Los Angeles, over platform features linked to addiction in younger users.

In March, a US jury ordered Meta to pay $375m for endangering children in a case brought by the state of New Mexico.

Last month, a judge in New Mexico also ordered Facebook and Instagram owner Meta to pay a further $567m in a second phase of the trial.

Meta denied wrongdoing but agreed to settle after evidence was heard that Meta knew its products harmed children’s mental health. The total payout – to be paid over 10 years – is a fraction of Meta’s 2025 revenue of $201bn.

The company, which was originally founded as Facebook in 2004 by Mark Zuckerberg, agreed to make maximum payments totalling $16.7bn to 47 US states as well as Washington, DC; Puerto Rico; American Samoa; and the Northern Mariana Islands.

Among those, California could receive a $2.2bn payout, while New York could receive $1.1bn. Texas reached a separate settlement worth more than $1bn. Some states will deposit funds they receive in general accounts, while others will earmark portions to address children’s mental health services.

The settlement does not require Meta to discontinue personalised recommendations or targeted advertising.

It also does not address some content researchers found particularly problematic, including posts that made Instagram users uncomfortable with their body image.

“Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta,” Meta said in a blog post. “We want to get this right for parents and teens.”

What changes will be seen on Instagram and Facebook?

Under the agreement, children under 18 using Meta platforms will be restricted to two hours’ use per day, with a night curfew in place from midnight to 6am. Meta will limit “social comparison” features by hiding likes and reactions to children’s accounts, and will ban “cosmetic procedure filters” that alter the appearance of a user’s image, as a default setting. These settings will only be able to be overruled by parental consent.

The company also agreed to disable the majority of push notifications from the platforms during school hours – 8am to 3pm – for teenage users.

It will also facilitate much closer parental supervision of social media accounts by giving designated adults the ability to more extensively monitor and change settings on a social media account.

Parents and guardians will be able to receive information about time spent on platform apps, and usernames of social connections and accounts sending messages to children.

Supervising parents will also receive daily notifications from Meta any time the teen account messages an adult account for the first time, as well as a link to the adult’s account. Parental accounts will also be notified any time the teen account searches for keywords related to suicide, self-harm or eating disorders.

Meta also agreed to improve the technology used to check children’s ages, using its own as well as third-party tools, with regular outside audits on how well this monitoring is working. This measure is particularly notable because Australia banned under-16s from using social media platforms in December last year. However, the Australian internet watchdog, eSafety, found in August this year that more than eight in 10 young Australian teens and preteens continue to use them – largely because age-check procedures are ineffective.

So far, Meta has only agreed to pay 70 percent of the settlement, or roughly $12.7bn, over the next 10 years. It will only pay the remaining amount, about $5bn, if its rivals – including Snapchat, TikTok and Alphabet-owned YouTube – adopt similar measures and agree to pay the same. It also said it would reduce time restrictions to one hour per day if other platforms do the same.

These changes would be phased over time. Once the court approves the settlement, non-personalised feeds would be introduced within four months; broader compliance measures within six months; and major age-assurance requirements within one year.

While these changes will apply to users in the US, it is unclear if Meta plans to introduce them worldwide. However, Meta is already under rising regulatory pressure in European Union countries and those elsewhere to implement similar changes.

How much difference will these changes make?

Critics and child safety advocates have acknowledged that this settlement has forced landmark changes by Meta, the world’s biggest social media company, which owns Facebook, Instagram, WhatsApp and Messenger, each of which has more than two to three billion monthly active users.

However, critics say the central plank of Meta’s latest settlement deal is the move to restrict teens to two hours per day on platforms, rather than fundamentally changing their addictive algorithms.

Sacha Haworth, executive director of The Tech Oversight Project, which campaigns for youth safety online, said the deal is a “historic settlement that will have a lasting impact, but we cannot truly protect all children and teens until these protections are required on every platform and are permanent – that’s something only Congress can do”.

Ella Bradshaw, policy officer for child safety online at the NSPCC, a UK children’s charity, welcomed moves to rein in “addictive” design features like personalised algorithms and likes. “These are the things that we know keep children hooked and feeling out of control of their screen time, so action here is necessary and welcome. However, important gaps remain,” she told Al Jazeera.  

Bradshaw described the settlement as taking “piecemeal action” on tackling risky features and addictive design choices which drive harm of children.

“This means features like disappearing messages, infinite scroll, the ability to gift and livestreaming remain unaddressed. Similarly, little has been announced on how Meta’s AI chatbots will be made safer – better guardrails are needed, particularly when children raise safeguarding concerns.”

Bradshaw also called for stronger protections for younger children as well as protections that “don’t suddenly drop away the moment a teenager turns 18.”   

Furthermore, she said: “Not all children have families they can rely on to oversee their online worlds and help them to stay safe. We know that the issue of patchy online protections extends across the online world.

“This settlement must spur governments and regulators to go further faster; taking stronger action across the online ecosystem including private messaging, AI tools and online gaming. Without that wider shift, children will continue to face avoidable harm.”

What action are other countries taking against Meta?

While action against social media giants in the US is mostly taking the form of lawsuits, elsewhere it is regulators who are leading the charge.

In the European Union, regulators are pursuing several legal and regulatory cases against Meta, covering antitrust rules for artificial intelligence (AI) on WhatsApp, as well as child safety protections and addictive platform features under the Digital Services Act (DSA).

The EU specifically accused the group of designing Facebook and Instagram to be “addictive”, adding that Meta has failed to adequately assess the danger its products pose to users’ physical and mental health.

On Thursday, a European Commission spokesperson said it is waiting on Meta to present changes to limit the addictive designs of its social networks.

“We have been very clear … Meta knows what we are expecting from them. … the ball is in Meta’s court,” Thomas Regnier said. “Now it is for the company to offer these commitments in the European Union to protect our kids here, too.”

In June, the UK government also announced a sweeping ban on social media for those below 16 to come into force next year, following a global trend after Australia pioneered it. The UK is also considering overnight curfews and ways to prevent infinite scrolling for those under 18.

In Brazil, a prominent consumer rights organisation, the Collective Defence Institute, filed twin lawsuits for three billion reais ($525m) in damages against the Brazilian subsidiaries of Meta, TikTok and Kwai in October 2024.

Those lawsuits also accuse the groups of failing to implement safeguards against addiction and use by children and adolescents. Since March this year, platforms have been required to link the accounts of children below 16 to legal guardians under Brazil’s Digital Statute for Children and Adolescents.

South Korea’s media regulator also reacted on Thursday to Meta’s settlement, calling for better protections for young users to be ideally applied worldwide, rather than just in specific markets.