Meta’s $18 Billion Settlement Explained: How Instagram Use Will Change For Teens

Meta has agreed to pay up to $18 billion over the next decade and introduce sweeping changes to how teenagers use Facebook and Instagram under a settlement with nearly all US states.

The agreement resolves claims that Meta’s platforms were designed to encourage excessive use among young users and that the company failed to adequately protect children, Reuters reported

Meta has denied wrongdoing. US District Judge Yvonne Gonzalez Rogers approved the settlement, describing it as “a fair, reasonable, comprehensive, and good faith approach” that would provide financial relief while requiring changes to Meta’s conduct.

The case began in 2023, when 29 states accused Meta of violating child privacy laws and deliberately designing its platforms in ways that could harm young users. Here is what the settlement means for teenagers and their parents.

What Is The Meta Social Media Addiction Case?

The lawsuit focused on allegations that Facebook and Instagram were designed to maximise engagement among children and teenagers, potentially contributing to excessive or addictive use.

State lawyers also alleged that Meta knowingly allowed children under 13 to use its platforms and collected their personal information without the required parental consent.

During a federal trial in California, prosecutors relied on millions of internal Meta documents, including research, emails and employee communications. One internal Instagram research document stated: “Teens have an addict's narrative about use.”

Meta maintained that it had spent years developing safety measures and conducting research to protect younger users. Instagram head Adam Mosseri told the court: “We're always working on teen safety.”

The trial ended after five days when Meta and the states reached a settlement, meaning the jury did not deliver a verdict on the claims.

How Much Will Meta Pay?

Meta will pay up to $18 billion over 10 years. The company said the payments will be made through annual instalments.

The settlement includes guaranteed payments of around $12.7 billion, while another roughly $5 billion is conditional on other social media companies adopting comparable protections.

The agreement covers 48 states, Washington, DC and three US territories. California is expected to receive around $2.2 billion, while New York's share is estimated at about $1.1 billion. Texas has separately reached a settlement worth more than $1 billion.

The settlement also includes around $459 million to resolve claims relating to Facebook's handling of user data in the Cambridge Analytica scandal.

What Will Change For Teen Instagram Users?

The most significant changes concern how much time teenagers can spend on Facebook and Instagram and when they can access the platforms.

Meta will introduce a default two-hour daily limit across Facebook and Instagram for teenagers. The restriction can be disabled only with parental permission.

The settlement also requires a Night Mode that blocks access between midnight and 6am. A separate school-hours setting will mute most push notifications between 8am and 3pm on school days.

Teenagers will receive prompts after 15 minutes of continuous use and notifications when their cumulative use reaches 60 and 90 minutes.

The agreement will also hide like and reaction counts by default on teenagers' profiles and on posts they interact with. Users will be able to disable video autoplay and choose a feed that does not rely on personalised algorithmic recommendations.

Certain “extreme makeup filters” will also be removed for minors.

Will Teens Be Limited To Two Hours A Day?

The two-hour limit is the default requirement under the settlement, rather than an absolute ban on longer use.

Parents can give permission for teenagers to bypass the restriction. The settlement also allows the limit to become stricter if other major platforms introduce comparable safeguards.

If TikTok, Snapchat and YouTube adopt the specified measures, Meta's default daily limit could fall from two hours to one hour.

California Attorney General Rob Bonta described the agreement as “a good blueprint” for other companies.

Why Is Night-Time Instagram Use Being Restricted?

Meta will automatically activate Night Mode for teenage accounts, blocking access between midnight and 6am.

The settlement builds on an existing feature that muted notifications for teenagers at night. Under the new arrangement, the restriction goes further by limiting access to the platforms during those hours.

The agreement also introduces restrictions on notifications during school hours, aimed at reducing interruptions between 8am and 3pm on school days.

What Happens To Other Instagram Features For Minors?

The changes extend beyond screen-time controls. Teenagers will have the option of using a non-personalised feed, while autoplay can be switched off.

Like and reaction counts will be hidden by default, and certain makeup-related filters will no longer be available to minors.

Meta will also strengthen measures intended to identify users who may be under 13 or teenagers using an incorrect adult date of birth.

However, the settlement does not require Meta to eliminate personalised recommendations or targeted advertising altogether.

Could Other Social Media Platforms Face Similar Rules?

The settlement could have implications for other major social media companies. Around $5 billion of the agreement is linked to whether TikTok, Snapchat and YouTube introduce comparable safeguards.

Meta has called on those platforms to adopt similar restrictions. Meta Chief Legal Officer CJ Mahoney said the company's new limits and protections “set the right path forward for our whole industry”.

The platforms could therefore face greater pressure from US authorities to introduce comparable safeguards for young users.

The settlement resolves the participating states' claims against Meta, but separate cases remain pending. New Mexico and Florida did not join the agreement. New Mexico has already secured separate rulings against Meta, while Florida plans to continue its litigation.

District of Columbia Attorney General Brian Schwalb called the agreement a “monumental public health victory”, saying the required safety measures would “fundamentally and immediately change how young people use Instagram and Facebook.”