Meta has reached an $18 billion settlement with 29 U.S. state attorneys general over lawsuits related to features on its platforms deemed harmful to minor users. The tech giant will implement significant changes for users under 18, including daily usage limits of two hours, disabling cosmetic surgery filters, and strengthening age verification. Meta will pay the settlement over ten years and record a $10 billion legal charge in the third quarter. Morgan Stanley analysts believe this settlement could clear the way for a wave of new AI product launches, with Meta set to unveil its consumer AI agent Hatch in September. Analyst Needham maintains its « hold » recommendation and notes that the timing of payments is poorly chosen as Meta expects up to $145 billion in capital expenditures in 2026 in the AI race.
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