Bloomberg now reports that the settlement also requires Meta to add protections for Facebook and Instagram users ages 13 to 17. That makes the deal more than a payment to end the Oakland trial, though the new report does not specify what those safeguards entail.
Meta Agrees to Pay States Up to $16.68 Billion
A court filing cited by a market-news account says the deal ends a 29-state case over alleged harm to children without a verdict.
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Meta adds teen safeguards
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BofA says Meta can turn back to AI
Bank of America says the settlement removes the threat of a large jury verdict and should let investors focus again on Meta’s AI plans. With a Buy rating and $810 target, the bank expects the next six months to bring a personal AI product, a top-tier model, licensing and capacity deals, and messaging-ad tools.
BofA also expects the agreement to pressure YouTube to adopt comparable teen protections and contribute to the states’ safety fund. Snap is not subject to Meta’s contingent payment conditions, but the bank says it may still face pressure to strengthen its safeguards.
Bloomberg confirms Meta’s teen restrictions
Bloomberg independently confirms that Meta’s multibillion-dollar settlement requires restrictions for users under 18 across Facebook and Instagram, reinforcing that the deal changes the products as well as resolving the states’ claims.
Meta makes the settlement a 10-year rulebook
- About $12.7 billion will go to states; another $5.3 billion depends on TikTok and YouTube adopting similar terms
- Users under 18 will default to a two-hour daily limit and a midnight-to-6 a.m. block, both removable only by a parent. The daily limit falls to one hour if TikTok and YouTube join
- Teens will be able to choose a non-personalized feed and hide like and reaction counts. Meta must strengthen age checks, remove users under 13 and answer 90% of potentially harmful-content reports within six hours
Meta sets the terms
- Users under 18 would default to a two-hour daily limit and a midnight-to-6 a.m. block, both liftable only by a parent
- Users under 18 could choose a non-personalized feed
- Meta must respond within six hours to 90% of teen reports of potentially harmful content and take measures to identify and remove users under 13
Meta accepts limits on teen use
The proposed settlement is broader than the payout first reported. Meta describes it as an $18 billion commitment over 10 years, including $12.7 billion for the states, of which $5.3 billion depends on conditions. California is due $2.2 billion. Meta will record a $10 billion legal expense in the third quarter while leaving its July guidance unchanged.
The deal would also impose concrete defaults on Facebook and Instagram users under 18: a two-hour daily limit and a midnight-to-6 a.m. block that only a parent could lift, plus the option of a non-personalized feed. Meta would have to answer 90% of teen reports about potentially harmful content within six hours, with an independent auditor reviewing compliance for five years.
If other platforms adopt comparable rules, the daily limit would fall to one hour. Meta is urging TikTok and YouTube to join the states' standards, giving the settlement a possible reach beyond its own apps. All terms remain subject to court approval.
Meta agrees to teen limits
The settlement now includes operational changes: Meta will limit users under 18 to two hours of social-media use a day and block their access from midnight to 6 a.m. An independent auditor will monitor compliance for five years.
Meta also committed $18 billion over 10 years to youth online-safety initiatives. It will record a $10 billion legal expense in the third quarter of 2026, while saying its July financial guidance remains unchanged.
The deal is therefore more than a payment ceiling. It imposes concrete limits on young users and outside oversight, resolving the biggest question left open when the settlement first surfaced.
Full story
The federal trial in Oakland was in its second week when the reported deal cut it short. California, Colorado, Kentucky and New Jersey had argued that Meta built harmful features into Facebook and Instagram and misled users about their safety. The wider group of states also accused Meta of collecting data from children under 13 without parental consent.
Instead of a ruling on those allegations, the 29 states stand to receive as much as $16.68 billion. The maximum is more than three times Facebook’s $5 billion Federal Trade Commission penalty in 2019, while giving Meta a ceiling in place of the far larger penalties the states had claimed.
That is the trade: a potentially enormous payment, and no court decision that Meta harmed children.