Meta has agreed to pay states up to $16.68 billion to settle claims that it deliberately engineered Facebook and Instagram to be addictive to children, a settlement reached this week in the middle of a closely watched federal trial in Oakland, California, according to Yahoo Finance, Forbes and multiple other outlets.

What happened

The settlement emerged during the second week of a federal trial brought by a coalition of 29 state attorneys general, who alleged Meta built features into Instagram and Facebook specifically to hook young users and that the company misled the public about the risks. Meta's stock rose about 4.4% in pre-market trading once the settlement was announced, according to CNBC's live markets coverage.

A young person lying in bed at night, their face lit only by the glow of a smartphone screen
The settlement forces new limits on how teenagers can use Instagram and Facebook, including a mandatory nighttime blackout.

Why it matters

The states' lawsuit accused Meta of designing addictive product features for minors and improperly collecting data from users under 13. As part of the settlement, Meta agreed to real, mandatory product changes for users under 18: a combined two-hour daily time limit across its apps, forced pauses after 15 minutes of continuous use and again at the 60- and 90-minute marks, and a mandatory overnight blackout blocking access between roughly midnight and 6 a.m. Multiple reports also describe additional restrictions, including blocked notifications during school hours; IF Daily has not independently verified every individual feature change beyond the time-limit and nighttime rules that were most consistently reported.

▶ CNBC's coverage of the settlement and Meta's stock reaction. ↗

What we know, and what's still unsettled

Meta has denied wrongdoing even as it agreed to pay, describing the settlement as an important step toward industry-wide standards rather than an admission of harm — that is Meta's characterization, not a court finding. Reported figures for the total value and exact structure of the settlement vary somewhat between outlets, and it still requires judicial approval before taking effect, so the final terms could shift. The $16.68 billion figure is the number most consistently cited across the outlets IF Daily reviewed.

A stock market candlestick chart on a trading screen showing a sharp upward trend
Meta shares rose roughly 4.4% in pre-market trading after news of the settlement broke.

Key takeaway: regardless of how the final legal details settle, the practical effect for millions of teenagers is real and immediate — mandatory time limits and a nighttime shutout are coming to Instagram and Facebook. IF Daily will follow up once the settlement receives court approval and its final terms are confirmed.