Meta to pay $17 billion in damages for social media harm to children

Meta has agreed to pay $17 billion in damages to settle claims that social media platforms are harmful to children.

The lawsuits allege that the social media platforms are addictive to children, mislead users about safety, and illegally collect personal information from minors.

Before the trial, Meta had estimated the maximum possible fine at about $1.4 trillion, while state attorneys general had put forward a more realistic figure of around $200 billion.

According to Axios, Meta will impose a number of restrictions on minors. These include a two-hour daily limit on Facebook and Instagram for users under 18, a block on access from midnight to 6 a.m., and a restriction on notifications during school hours.

**Where will the money go?**

It’s not just a fine, but Meta has agreed to allocate funds to states for a variety of public health purposes. These include crisis support, after-school programs, active recreation, and youth mental health programs.

**Interesting fact: pressure on competitors**

The roughly $5 billion in the settlement will only come into effect if YouTube and TikTok also agree to similar agreements with states. The agreements include a one-hour daytime limit, nighttime limits, age verification systems, and a payment of roughly $5 billion from each company. In other words, Meta is trying to bring competitors into a similar regulatory framework.

**Financial implications**

The company said it would take a $10 billion charge in the current quarter for the deal, an amount not previously forecast. Meta shares rose 4.4 percent in premarket trading, as investors seemed to accept that the worst-case scenario had been averted.