The deal will introduce strict new limits on teen accounts.
Meta has agreed to a potential $17.1 billion settlement with California and 28 other US states. Following a landmark trial over the safety of teenagers on Facebook and Instagram.
The lawsuit accused Meta of deliberately designing addictive features, misleading users about the safety of its platforms and unlawfully collecting data from children under 13 without parental consent.
The jury trial began in Oakland, California, last week and was expected to run for six weeks.
Instead, the case has reached a major settlement just days after proceedings began.
Under the agreement, Meta will pay at least $12.1 billion over the next decade, with a further $5 billion potentially added if competitors including TikTok and YouTube introduce similar safeguards and make related payments.
Meta has denied the allegations throughout the case, and the settlement does not include an admission of wrongdoing.
The agreement will also introduce major restrictions for users under 18.
Facebook and Instagram will impose a two-hour daily usage limit, with reminders after 15 minutes of continuous use and again after 60 and 90 minutes of total use.
Teen accounts will also be blocked from using both platforms between midnight and 6am unless a parent or guardian intervenes. Notifications will be silenced from 10pm to 7am, as well as between 8am and 3pm on school days.
Meta will also have to offer teenagers a non-personalised chronological feed. Hide like counts by default and remove filters that simulate extreme cosmetic procedures.
Meta, meanwhile, said ensuring teenagers have a “safe and productive experience” on its platforms remains “an absolute imperative.”
