Meta dodges ‘Big Tobacco’ nightmare with $18 billion settlement in child-safety lawsuit

The social-media giant’s agreement with state officials removes a cloud that was hanging over its stock, analysts say.

Mike Blake/File Photo/Reuters Meta has agreed to pay a staggering $17 billion to settle a sweeping child safety case. Mark Zuckerberg’s Meta faced lawsuits from 47 states and U.S. territories over claims that it violated federal child privacy and states’ consumer protection laws. The states accused Meta of deliberately

Meta's settlement is roughly 27% of last year's profit and about 8% of annual revenue—a little more than three Alexandr Wang's.

Meta had been accused of collecting data from children aged 13 and under without their parents' consent as well as designing social media platforms to keep young people addicted

Meta’s child-safety deal looks like a big blow until it is measured against one quarter of the company’s profit.

As part of Texas’ settlement, the tech giant behind Facebook and Instagram will apply stricter age verification measures and institute a daily two-hour limit for teens.

Meta agreed to settle with U.S. states for up to $16.7 billion in a landmark deal over allegations Facebook and Instagram were designed in ways that harm children. The company is calling on its peers to sign on to the pact as well, saying it won't work unless they jointly line up behind broad reform. Why it matters:

The tentative agreement is a massive concession from the tech giant.

Meta Reaches $18 Billion Settlement With 48 States Over Child-Safety Claims  WSJ

The social media giant also agreed to make sweeping changes to Instagram and Facebook.

The settlement was reached during a California federal trial, averting one of the highest-profile tests yet of allegations that social media companies harmed young users.

Mark Zuckerberg. | Image: Cath Virginia / The Verge, Getty Images Meta settled its latest kids online safety trial with a group of 29 state attorneys general, sparing it from the remainder of a trial that could have cost it hundreds of billions of dollars. Under the terms of the settlement, Meta agreed to come up wi

Settlement is one of the biggest in state consumer protection history, ending landmark trial filed by 47 states

Safety mechanisms must take into account parents who work multiple jobs, or have never used technology beyond their mobile phones

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