Meta has agreed to an $18 billion settlement with nearly 50 U.S. states to resolve allegations that its social media platforms, Facebook and Instagram, were designed to addict children. Under the terms of the agreement, which will be paid out over a decade, Meta will implement new restrictions for teenage users, including a default two-hour daily limit on its applications for those under 18. Meta has denied any wrongdoing in reaching the settlement.
The deal comes as governments globally attempt to regulate how minors interact with social media. Late last year, Australia enacted a world-first ban on social media for children under 16. However, enforcement has faced challenges; studies from Australia’s internet regulator indicate that 80% of minors remained on these platforms months after the ban took effect in December, citing weak age-verification systems.
In response to the U.S. settlement, Australian Communications Minister Anika Wells stated that social media companies possess the technical tools to protect young people but have previously chosen not to employ them. Meanwhile, officials in Poland have requested that the European Commission fine Meta €250 million ($291 million) for failing to eliminate scams and illegal applications. In Asia, regulators in South Korea and the Philippines are also seeking to expand these youth protection measures to their own markets.
The scale of the impact extends beyond the United States to international markets and regulatory bodies. In Australia, the reported failure of the under-16 ban to restrict 80% of minor users has already led lawmakers to double maximum fines and increase the powers of internet regulators. For families in Australia, this means a potential shift toward stricter age-verification technologies that could change how all citizens access digital services. Additionally, the move by Polish officials to seek a $291 million fine suggests that social media firms may face escalating financial liabilities across the European Union for content moderation issues.
Furthermore, the settlement may influence ongoing legal actions and future government policies worldwide. In the U.S., social media companies still face thousands of separate lawsuits from school districts, municipalities, and individuals regarding anxiety and depression among youth. In Australia, the law firm Shine Lawyers is currently exploring a potential class action suit modeled after the California litigation. As regulators in the Philippines and South Korea meet with Meta officials, the outcome of these talks will determine whether the U.S.-specific protections become a global standard for the industry. Meta is currently in negotiations with Philippine officials regarding child exploitation and online scams as of Thursday.