Meta has agreed to pay up to $18 billion (~RM 73 billion) over 10 years to settle lawsuits related to children's social media addiction. The settlement includes $16.7 billion in payments to 47 US states and territories. Meta has also agreed to limit access to Facebook and Instagram for teenagers in the US.
Under the agreement, teenagers will be limited to 2 hours per day on Facebook and Instagram. Usage will be restricted between 12 midnight and 6 am without permission from a parent or guardian. There will also be a feature to limit notifications during school hours between 8 am and 3 pm. Meta is now urging TikTok and YouTube to implement similar access restrictions for teenagers.
Last month, California, Colorado, Kentucky, and New Jersey sought penalties of up to $1.4 trillion (~RM 5.64 trillion) against Meta over allegations that Facebook and Instagram were designed to addict teenagers and mislead the public about the safety of using the platforms.
The amount of the penalty sought is almost as large as Meta's current market value of $1.46 trillion. Despite agreeing to pay a large sum to settle the case out of court, Meta's shares rose after the announcement.
Still, $18 billion is a small amount compared to the $200.97 billion in revenue that Meta recorded last year.
In Malaysia and Australia, the use of social media platforms has already been banned for teenagers under the age of 16. The drastic measures were taken in both countries on the grounds of the mental health of teenagers. Identity verification must be done using a national identity card such as MyKad.
