Meta settles with states, sets new industry standards over child safety
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Newsletters Axios Local Show Axios Pro Axios Live The Axios Show Login Axios All topics Axios Search Updated 3 hours ago - Business Meta agrees to $17 billion deal, pushing new industry standards on child safety Nathan Bomey email (opens in new window) sms (opens in new window) facebook (opens in new window) twitter (opens in new window) linkedin (opens in new window) bluesky (opens in new window) Add Axios on Google Add Axios as your preferred source to
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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.
Why it matters: This is social media's version of the landmark 1990s tobacco settlement, a settlement that effectively reshapes the industry and the way young Americans experience some of their favorite platforms.
Driving the news: Meta agreed to provide compensation to the states for a variety of public health purposes, including crisis intervention services, after-school programs, outdoor activities and youth mental health programming.
The intrigue: Alongside the settlement, Meta issued an open letter to TikTok and YouTube calling on them to join in the deal.
By the numbers: Meta shares edged up slightly after the deal.
Follow the money: At roughly $17 billion, the Meta settlement is on par with historic federal civil settlements like the Volkswagen " Dieselgate " scandal and the BP Deepwater Horizon deal.
The other side: "This is not just about money — it's about changing how these platforms operate so they stop exploiting the developing brains of our kids," Indiana Attorney General Todd Rokita said in a statement.
What's next: The deal is expected to end the trial with a judge's approval.
This is breaking news. Check back for updates.
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