California · Meta · U.S. · Instagram · The Atlantic Technology
How to Lose $12 Billion and Still Win
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Meta avoided the worst today by settling a massive lawsuit over alleged damages “to the mental and physical wellbeing of America’s youth.” The case, brought by the attorneys general of 47 states, plus U.S. territories and Washington, D.C., had been mid-trial in a federal court in California and was by far the most significant legal challenge the company has ever faced.
Key facts
- As for the one-hour limit, in an email, a Meta spokesperson told me that the average American teenager spends about 66 minutes a day on Instagram anyway, and that teen activity across platforms — It has also agreed to pay an additional $5.3 billion if TikTok and YouTube, which are also defendants in the ongoing litigation, implement restrictions and pay into the settlement
- If Meta is going to resolve all its pending liabilities, this is only the first of several large checks it is going to have to write,” Eric Goldman, a professor at Santa Clara University School
- Judge Yvonne Gonzalez Rogers agreed to the proposal this morning, saying “I’m happy” and congratulating both parties
Summary
The settlement can be used by the states and other parties to pay for their litigation costs and for a variety of school and community programs. The former claim will have to be proved over time, but the latter is clearly true. Teen users, by default, will not have access to most features of Instagram and Facebook at night (though they can still access messages and settings) and will not receive notifications from the platforms during school hours (defined as 8 a.m. to 3 p.m.