(Update with more details on the settlement throughout from a Meta press release.)
Meta Platforms (META) has agreed to pay a maximum of $16.68 billion to resolve the claims brought by several US states that the tech giant used its platforms to "ensnare" youth and teens, according to a filing in federal court.
The injunctive relief within the consent judgement requires "(1) default daily limits and nighttime blocks for teenage users of Meta's Social Media Platforms; (2) enhanced age assurance measures to prevent children from accessing the Platforms, or age-restricted content available on the Platforms; (3) establishment of additional tools to help parents and guardians to protect their children online; and (4) Meta to make payments to Plaintiffs as provided therein," the filing said.
Meta said in a separate release that the agreement includes a payment of about $18 billion to be distributed in annual installments over a 10-year period. Plaintiff states will receive about $12.7 billion over the decade, while the remaining roughly $5.3 billion will be released if Alphabet's (GOOG, GOOGL) YouTube and TikTok "implement a one-hour Daily Limit, Night Mode, and Age assurance measures" and they each pay an amount equal to the 30% figure, "with half of the remaining funds tied to YouTube's payment and half tied to TikTok's."
Meta also said it expects accrue a legal expense of about $10 billion in Q3 tied to the agreement.
"For meaningful progress to happen, we urge TikTok and YouTube to join us and state attorneys general in adopting this new standard, to ensure teens use social media in a healthy and responsible way," Meta said.
Alphabet and TikTok's parent, ByteDance, didn't immediately reply to requests for comment.)
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