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Published Aug 26, 2026, 1:03 PM EDT

Facebook and Instagram's parent company’s legal woes aren't over

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Big tech companies with seemingly endless coffers are good at avoiding real punishment, even when they technically lose a major lawsuit. The settlements or fines might sound hefty in such cases, but the amounts are insignificant compared with the company's overall revenue. The settlement that was just reached at the end of Meta's recent social media addiction lawsuit, however, might actually make Mark Zuckerberg wince.

The New York Times reports that Meta will pay up to $17.1 billion after reaching a "dramatic" settlement with 47 states. Plaintiffs accused the social media platform of harming children by creating an addictive environment comparable to that of slot machines. Meta was also accused of violating a law that bans the collection of data from minors without parental consent, and of misleading users into believing its platforms were safe. Though executives at Meta argued that there was no scientific evidence that its social media sites could lead to addiction, plaintiffs countered that internal communications at the company proved Meta was aware of its potential harm to young users.

The settlement falls significantly short of the $200 billion sought by states such as California, Colorado, Kentucky, and New Jersey. Meta is required to pay an initial $12 billion; the additional $5 billion will only be doled out if companies such as Snapchat and TikTok also agree to pay penalties and enact changes on their respective platforms. Still, the settlement figure is significant compared to Meta's profits. According to Meta's 2025 financial report, the company had a net income of $60.46 billion.

The social media addiction settlement is also one of a number of litigations Meta has faced this year. The company paid nearly $1 billion in penalties in another recent child safety lawsuit, and has paid an estimated $2 billion in legal costs as of this summer. That number has only grown since July 2026, and will continue to balloon as Meta awaits trial in "numerous" other cases scheduled in the coming months. Even without settlements in those cases, Meta may find itself paying about a third of its total 2025 profits in the existing legal fights.

In addition to the financial penalties, Meta will remove infinite scrolling on Facebook or Instagram and will silence late-night notifications. The company also promises to limit usage of its platforms after midnight, though it's unclear how Meta plans to enact this rule or how easy it will be to circumvent it. Shockingly, these are changes that will affect all users on Meta's platforms, not just children. No specifics were shared, but Meta also plans to alter controversial features like beauty filters and public Likes, and to implement better age verification tools and parental controls.

Brian Schwalb, the attorney general of the District of Columbia, called the settlement a "monumental public health victory" that "will not be the last" of its kind. The agreement was reached on Wednesday morning, and though the ink has not yet dried, the judge presiding over the case is expected to sign it.