Meta has agreed to pay up to $18bn to settle claims brought by 29 US states alleging that its social media platforms harmed children and were deliberately designed to encourage addictive use.

The lawsuit alleged that Meta knew platforms including Facebook and Instagram could pose risks to young users while designing features intended to keep children engaged. The states also accused the company of collecting children's data without parental knowledge in breach of the US Children's Online Privacy Protection Act. Meta has not admitted liability as part of the settlement. 

Subject to judicial approval, the agreement will also impose a series of protections for teenage users for 10 years. These include a default two-hour daily limit across Facebook and Instagram, overnight restrictions between midnight and 6am, muted notifications during school hours and limits on displaying likes and reactions. 

Meta will also restrict certain appearance-altering filters for teenagers and invest further in technology intended to identify users who may be younger than 13 or teenagers who have registered their accounts using an adult date of birth. The company said it would strengthen parental controls and measures intended to prevent unwanted interactions between adults and teenagers. 

The settlement payments are expected to be spread over 10 years. However, about 30% of the potential total – roughly $5.3bn – is conditional on YouTube and TikTok adopting specified protections, including time limits, night-time restrictions and age-assurance measures, and agreeing to matching financial commitments. 

Meta has presented the agreement as a possible framework for wider industry standards. Chief legal officer C.J. Mahoney argued that protections would be more effective if other major platforms adopted similar measures.

The company also said it expects to record a $10bn legal expense in the third quarter as a result of the agreement.