Arya News - Meta settles $16.68bn lawsuit over child addiction claims, agreeing to major changes in Facebook and Instagram features.
Meta Platforms has agreed to settle a lawsuit that accused the company of designing Facebook and Instagram in a way that addicted children, misled consumers about safety, and collected personal data of children on the platform.
On Wednesday, the social media giant agreed to pay a maximum of $16.68bn as part of a settlement to resolve claims brought in the United States case, championed by a coalition of 29 US states. The case, which started on August 18, was expected to last six weeks.
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The California State Attorney General’s Office said that the Mark Zuckerberg-led company would also identify and remove children under the age of 13 from the platform.
Meta denied any wrongdoing as part of the settlement, which still needs court approval. It had faced up to $1.4 trillion in fines in the case, but the coalition had been seeking a penalty closer to $200bn.
The settlement comes after a loss in a comparable landmark case in New Mexico, where a jury ordered Meta to pay $375m in March and another $567m in August.
Meta’s stock tumbled in early trading on Wall Street, down 0.1 percent since the market opened.