Meta has agreed to a massive legal settlement of approximately $18 billion (around 25 trillion KRW) to resolve extensive lawsuits brought by nearly all U.S. states. The states accused the tech giant of intentionally designing Facebook and Instagram with addictive features that fueled a youth mental health crisis while misleading the public about the inherent risks. Submitted to the federal court in California, this landmark agreement successfully averts a high-stakes trial that could have resulted in even steeper financial penalties. 

Under the terms of the multi-billion-dollar settlement, Meta will pay roughly $12.7 billion directly into state funds over a 10-year period to support youth online safety initiatives. An additional portion of the funds is structured to encourage industry-wide alignment: if competitors like TikTok and YouTube adopt matching child-safety restrictions, the remaining balance will be integrated collaboratively. 

Beyond the financial penalties, the agreement enforces structural and algorithmic transformations across Meta’s primary platforms. For users under the age of 18, daily screen time on Facebook and Instagram will be capped at two hours by default, and a mandatory night-time lockout will block access between midnight and 6:00 AM. Furthermore, to curtail digital distractions during school hours, a "school mode" will automatically suppress non-essential push notifications on weekdays from 8:00 AM to 3:00 PM. 

Crucially, the settlement addresses the addictive feedback loops inherent in modern social media. Teen accounts will feature unpersonalized, chronological feeds rather than endless AI-driven content recommendations. Young users will also be shielded from public metrics by having "like" counts hidden by default, and harmful aesthetic tools—such as photo filters simulating plastic surgery or heavy makeup—will be restricted. To safeguard privacy and prevent underage access, adolescent accounts will automatically default to private settings, barring strangers from contacting them, while enhanced age-assurance technologies will be deployed to block children under 13 from registering. 

Legal experts and child advocacy groups view this agreement as a watershed moment for digital regulation. While the settlement stops short of an admission of liability by Meta, legal analysts emphasize that it forces systemic changes that could fundamentally reshape how minors experience social media globally. Meta executives have publicly urged rival platforms to embrace these robust protective standards, framing the framework as an essential step toward establishing a safer digital ecosystem for future generations.