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Meta's $18bn settlement may reshape child safety on social media

Meta agreed to an $18bn settlement resolving claims that Facebook and Instagram harmed children, prompting potential industry-wide changes on child safety.

Meta agreed to an $18bn settlement resolving claims that Facebook and Instagram harmed children, prompting potential...

Meta agreed to an $18bn settlement on Wednesday to resolve claims that Facebook and Instagram harmed children, a decision that surprised observers who expected prolonged courtroom battles.

The case technically centered on children's online privacy under the US Children's Online Privacy Protection Act (COPPA), a law nearly 30 years old that predates modern social platforms, and focused on Meta's collection and use of data from children under 13 over several years.

While the trial lasted only five days and concluded before CEO Mark Zuckerberg testified, internal documents revealed that Meta knew opt-in safety tools often had low adoption and launched features that were not enabled by default, and whistleblower Arturo Bejar claimed he warned executives about harmful content without action being taken.

Experts note the settlement may be long overdue and include a two-hour daily time limit for teen users on both platforms, with direct messages exempt from the limit, muted notifications between midnight and 6:00 and on school days between 8:00 and 15:00, and hidden likes for teens.

Meta stated new features to identify child users will take up to a year to roll out, and the company emphasized that its safety measures will only be effective if rivals adopt them, suggesting TikTok and Snapchat may follow suit.

Arturo Bejar, the former Instagram engineer turned whistleblower, said the proof of the pudding will be whether the new teen safety features are effective, stressing that Meta must be held accountable for results, not efforts.

The settlement avoids admitting wrongdoing and allows Meta to continue generating revenue from its social apps, which remain central to its business model and data-driven advertising strategy.

The worst-case penalty scenario imagined by analysts was $1.4tn, roughly the company's entire value, but the agreed $18bn over 10 years is significantly smaller.

Meta's commitment to AI development does not diminish its reliance on the revenue generated by its social platforms, and the new safety features will be made default or optional for teens within six months.

The global backlash against social media's impact on children may prompt other regions to adopt similar measures, and the industry may see a natural winding down as younger users age out of the platforms.

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