Meta pays $18 bn (!) settlement for offering addictive apps to teens

Meta agrees to change its key features to settle in what would have become a potential landmark trial for Big Tech companies in general. Find out in this blog post why Meta’s settlement shows us how Big Tech prefers to maximize profits instead of respecting its users.

Meta pays $18 bn (!) settlement for offering addictive apps to teens

In August, the Big Tech corporation Meta, the company behind Facebook and Instagram, faced what would have become its biggest legal challenge yet. The accusation: Meta purposely designs addictive features in its products, namely in Facebook and Instagram, which harm young teenagers. But the Silicon Valley tech giant avoided going through the whole trial by reaching a $18 bn settlement beforehand. A settlement that could change social media as we know it and that further underlines that the accusation does not come out of nowhere.


The trial

Meta, the company behind social media giants Facebook and Instagram, has faced many legal battles in its history so far. Only in the last months has the firm been ordered by a judge in New Mexico to pay a $567 million penalty and by a jury in Los Angeles to pay a $6 million fine to a woman who claims to have become addicted to Instagram and YouTube when she was just a child.

Related: A growing number of countries has started to ban social media for teenagers.

However, in the middle of August 2026, Zuckerberg’s company stood before its biggest legal challenge yet in what had the potential of becoming a landmark trial. A lawsuit that was filed by 29 US states (including California, Kentucky and Colorado), representing the remaining states and thereby serving as a pilot trial. In other words, a potential sentence would not have consequences for one state but for the whole of the US.

The trial has been accompanied by parents who have lost their children due to mental health issues which (most probably) have worsened through the use of social media.

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The accusation

In legal terms, the trial deals with violations of state consumer protection laws as well as violations of the Federal Children’s Online Privacy Protection Act by harvesting the personal data of children without their parents’ consent.

In particular, the federal states accuse Meta of deliberately developing addictive features (and thereby exploiting weaknesses in the human brain) in order to keep its users on its platforms for as long as possible – which in turn maximizes Meta’s profits. More specifically, the trial deals (or rather, would have dealt) with features such as the like button, infinite “doom” scrolling and video autoplay.

After all, this is what the firm’s business model is solely based upon: Collecting as much data from its users as possible, keeping them on the platform for as long as possible, and showing as many targeted ads as possible, to make as much money as possible. And one thing we all have learned so far is this: Nothing on the internet is ever really free. You may not pay with money but with your data, with your attention, potentially even with your health.

Tip: But luckily, you can stop Facebook collecting your data – best by quitting Big Tech completely.

The trial may primarily be about specific key features, however, it necessarily deals with the much broader question of how social media platforms are designed in general. Thus, the aim of the state prosecutors is to force Meta to remove its addictive designs to bring its socials media platforms to a healthier version for children and teenagers.

While the defense team surrounding the firm’s legal chief has repeatedly claimed that it has introduced safety measures to reduce the risk its social media platforms can pose. Nevertheless, critics have argued that these features were purposefully “designed to fail”.

The settlement

The trial was expected to last for about six weeks in front of a jury in Oakland, California. It was further expected to hear the CEO Mark Zuckerberg testify in court. However, before the settlement was reached, a former security engineer at Meta, who has now become a famous whistleblower and an outspoken critic of its former employer, has testified in the trial about the security risks Meta’s platforms pose for young children and teenagers.

And then, things turned out slightly different than previously expected: The trial came to a surprising end before it even really started as Meta agreed to a 18 billion dollar settlement and promised to change some of its key features. A settlement that might fundamentally change social media as we know it today.

The settlement includes the changing of the following key features (notably, ad targeting is not included):

  • Default daily time limit of two hours for users under the age of 18 that can only be turned off with a parental permission

  • Hidden likes on teen’s profiles and those they interact with

  • Stopping notifications during school time

  • A block on its apps during critical overnight hours

  • Bans on plastic surgery filters

  • The ability to turn off autoplay for videos and content

  • The ability to choose a feed that is not driven by an algorithm

Related: If you’re tired of Big Tech and want to switch to ethical social media platforms, there are great Instagram, Discord, WhatsApp or Google alternatives available. Check them out!

Final thoughts

Big Tech finally is being held accountable! And this trial – or almost-trial as you might call it – is a good start and may just be the beginning. Because if it were up to the state prosecutor, Snapchat and YouTube will follow next. TikTok should also be put on this list.

The settlement is a big deal, not only in numbers but also when it comes to what it entails for the future of social media. Because suddenly it becomes apparent that Meta is indeed capable of enabling features to offer a more ethical and healthier social media – it only needs to be forced to do so.

Still, what this trial has made clear to us is the following: We cannot rely nor should we rely on Big Tech! Because they will do everything in their power to keep abusing their users and their users’ privacy – as long as it helps maximizing profits. We have to remember that Meta’s whole business model is solely based upon showing its users targeted ads and earning billions with this. Thus, Meta rather pays an 18 billion dollar settlement than having put its users’ health and their privacy first to begin with. Because many experts say that Meta knew about its addictive features and the harm these cause – yet the company did nothing about it, until it was forced to by court.

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