Meta’s $17.1 billion settlement marks a new chapter in social media regulation

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Meta agreed to pay up to $17.1 billion to settle claims from 47 states, the District of Columbia, and several US territories alleging that Facebook and Instagram were deliberately designed with addictive features harmful to children’s mental health. The settlement, the largest consumer protection payout ever against a technology company, mandates strict restrictions for users under 18: a combined two-hour daily time limit across both platforms, a hard usage block between midnight and 6 a.m., and silenced notifications during school hours. Approximately 70% of the $17.1 billion is guaranteed, with the remaining 30% contingent on rival platforms such as TikTok, Snapchat, or YouTube reaching similar agreements. Meta’s stock rose 4.1% intraday before closing 1.1% higher on the day of the announcement.

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