Meta agrees to pay up to $17.1 billion and overhaul how children use Instagram and Facebook, settling a landmark lawsuit brought by 29 US state attorneys general who accused the company of knowingly harming young people's mental health.

The settlement, which Meta has accepted without admitting wrongdoing, marks one of the largest legal actions ever taken against a social media company over child safety, according to The Independent.

An independent auditor will monitor compliance, with oversight from the states that filed the case.

The Independent puts the initial financial penalty at $12.1 billion, estimating a potential rise to $17.1 billion depending on what action is taken against other platforms in future proceedings.

Beyond the fine, Meta is required to introduce sweeping changes to both Instagram and Facebook that will significantly alter how children and teenagers experience the platforms.

What Changes?

Children will be limited to two hours of daily use across both platforms.

After 15 minutes of continuous scrolling, they will be prompted to take a break.

If Snapchat, TikTok, and YouTube agree to similar terms, that daily limit will drop further to one hour and remain in place for a decade.

Late-night access will also be cut off, reports The Independent.

Children will be blocked from their feeds between midnight and 6am, and notifications will be silenced between 10pm and 7am.

During school hours on weekdays -- between 8am and 3pm -- push notifications will be blocked entirely.

Meta will also be required to strengthen age verification to prevent young children from accessing the platforms by misrepresenting their age, and to introduce tougher safeguards against harmful content including posts related to bullying, eating disorders, suicide, and self-harm.

The Independent says parental controls will be made simpler and more accessible, and features accused of fuelling low self-esteem among young users -- including beauty filters and visible "like" counts -- will be banned or restricted for children.

Why Did It Come to This?

Twenty-nine state attorneys general filed the lawsuit accusing Meta of being aware that its platforms were damaging the mental wellbeing of young users while continuing to design them in ways that encouraged prolonged engagement.

The case reflects growing pressure on social media companies globally to take greater responsibility for the effects their platforms have on children and teenagers.

Similar changes may be required of Snapchat, TikTok, and YouTube if those companies face comparable legal action in future.

Meta has not admitted any wrongdoing as part of the settlement, The Independent reports.