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Meta has reached an $18 billion settlement with attorneys general from 52 US states, territories and DC over claims it deliberately designed Instagram to be addictive to teenagers. As part of the deal, Meta will fund youth safety programs and roll out new default restrictions for under-18 users across Instagram and Facebook, including a combined two-hour daily time limit and a midnight-to-6am blackout period.
Meta shelved a broader round of layoffs tied to its 'Project OT' restructuring effort, which aimed to replace larger teams with AI agents and smaller staff groups. Internal data showed AI-generated code volume jumped 220%, but actual product improvements reaching users grew only 36%, while security incidents rose 40% and time spent fixing them climbed 70%.
Meta agreed to pay $16.7 billion to resolve a consolidated lawsuit brought by 51 state attorneys general over allegations its platforms fostered social media addiction among young users. The deal came just over a week into trial, before CEO Mark Zuckerberg was expected to testify, and California AG Rob Bonta said it does not shield Meta from further legal exposure. Florida's attorney general called the sum too small for a company of Meta's size and said his state will continue pursuing its own separate lawsuit.
Mark Zuckerberg published a lengthy manifesto on Meta's website outlining his vision for AI, framing it as 'personal superintelligence' meant to be widely accessible rather than concentrated among elites. The statement follows Meta's costly retreat from its metaverse ambitions and mirrors similar declarations from rivals like OpenAI's Sam Altman and Anthropic's Dario Amodei, though Zuckerberg emphasizes broad accessibility for everyday users, from entrepreneurs to children.
Meta has settled child-safety-related claims for $18 billion, according to a roundup of risk and compliance news. The same briefing notes Florida's governor voicing concern over Flock surveillance cameras and the FBI dismantling a large China-linked hacking network.
Meta has settled with 47 US states over youth safety harms, agreeing to pay at least $12 billion regardless of outcome, with an additional $5.3 billion contingent on TikTok, YouTube and Snap adopting similar protections like default usage limits and nighttime notification blocks. Meta publicized the deal through an 'Open Letter' and full-page newspaper ads urging its rivals to match its new standards, while TikTok, YouTube and Snap have not yet commented.
Meta is reportedly encouraging other major platforms like YouTube and TikTok to share in settling claims over harm to young users' mental health, but Snapchat appears to be left out of that outreach. The move would spread liability and costs across multiple companies rather than Meta alone, even though bringing in more parties could theoretically raise Meta's own settlement obligations.
Meta has agreed to roll out new safety restrictions for teen accounts on Instagram and Facebook within six months, as part of an $18 billion settlement reached with 48 states. The agreement follows scrutiny over how the platforms have handled minors' safety and mental health concerns.
Meta has agreed to an $18 billion settlement with 52 attorneys general representing 29 U.S. states over allegations it designed Instagram and Facebook to hook young users. The company admits no wrongdoing but commits to detailed platform changes for minors, with the payout spread across a decade, softening its financial impact given Meta's $200 billion-plus annual revenue.
Reuters reports that Meta developed an internal restructuring effort, codenamed Project OT, that explored replacing much of the daily work of thousands of employees with AI systems overseen by small human teams. The plan, reportedly set in motion by CEO Mark Zuckerberg, called for two rounds of layoffs; the first occurred in May, but Meta scrapped the second round. Meta confirmed the scenario-planning exercise took place but said not every scenario was implemented, noting thousands of employees were instead redeployed to new priority teams.
Meta reached a proposed settlement with a coalition of state attorneys general over lawsuits alleging harm to young users, avoiding a federal trial in Northern California. The deal, approved by Judge Yvonne Gonzalez Rogers, includes payments of up to $16.7 billion over a decade and new teen-focused features like forced time limits, notification blocks, and a chronological feed option.
Meta reached a settlement of nearly $18 billion with almost all US states over claims it designed Facebook and Instagram to foster compulsive use among children and hid mental health risks. The deal, still pending court approval, requires Meta to impose a default two-hour daily time limit for teens, a midnight-to-6am usage block, and a school-hours notification mute, while Texas separately secured $1 billion outside the main $16.7 billion pact.