Meta settlement puts fresh focus on global efforts to protect young social media users

Meta (NASDAQ:META) is facing renewed international scrutiny over protections for younger social media users after agreeing a settlement of up to $18 billion with nearly 50 US states, a development regulators say demonstrates that technology companies have tools available to strengthen online safeguards.

The agreement, which addresses claims concerning the impact of Facebook and Instagram on teenagers, could influence how governments approach social media regulation worldwide. Meta denied wrongdoing as part of its decision to settle.

Australia, which introduced a landmark restriction on social media use for children under 16 late last year, said the settlement reinforced the case for stronger protections.

Australian Communications Minister Anika Wells said social media companies “have the tools at their disposal to protect young people from their addictive features but have chosen not to use them”.

“That’s why Australia took world-leading action to create a minimum age for social media, and we are proud that more than 20 countries are joining us,” she added in an email to Reuters.

Facebook and Instagram to introduce new teen safeguards

Under the US agreement, Meta will make payments over a decade while introducing significant changes governing how teenagers interact with Facebook and Instagram.

Among the measures is a default daily limit of two hours on the apps for users under 18, adding another layer of protection intended to manage younger users’ engagement.

The settlement could become an important reference point for regulators elsewhere as governments examine whether similar technical safeguards can support their own efforts to protect children online.

Australia has already moved aggressively in this area, although implementation of its under-16 restrictions has faced challenges.

Studies, including research from Australia’s internet regulator, have indicated that around 80% of minors continued using social media several months after the restrictions came into effect in December. Concerns about age-verification effectiveness subsequently prompted lawmakers to double the maximum penalty and strengthen regulatory powers.

Governments increase pressure on social media platforms

Regulatory interest is expanding beyond Australia and the United States.

Poland’s digital affairs minister has asked the European Commission to impose a €250 million ($291 million) penalty on Meta.

“I also call on Meta to immediately introduce effective tools to eliminate scams, false advertising, and the promotion of illegal applications,” Krzysztof Gawkowski posted on X.

Across Asia, governments including those of China, South Korea, India, Malaysia, Indonesia and the Philippines are also exploring ways to limit children’s exposure to social media.

South Korea’s media regulator said the protections introduced by Meta should be extended to younger users globally rather than being limited to selected markets.

Philippine Department of Information and Communications Technology Secretary Henry Aguda said he hoped the Meta settlement “will boost my talks with Meta this morning here in Singapore at their HQ”.

Aguda is meeting Meta representatives to discuss areas including online sexual abuse and exploitation of children, child sexual abuse material, financial scams targeting Filipinos and the online grooming of minors.

Legal developments could extend beyond the US

Meta and other social media companies continue to face thousands of cases in US federal and state courts brought by individuals, school districts, municipalities and other public bodies.

The claims broadly allege that platform features were designed to encourage compulsive use among children and contributed to mental health harms. These allegations remain subject to ongoing legal proceedings.

The US settlement is also attracting attention from lawyers elsewhere. Australian class-action firm Shine Lawyers said it was discussing a potential comparable case with Mark Lanier, an attorney involved in the California action against Meta.

“For years, families have been asking whether enough has been done to protect children from platform features designed to maximise engagement,” said Shine Lawyers head of class actions Craig Allsopp.

“We are now examining whether similar legal issues arise in Australia, including whether Australian children and families may have claims connected to the design, operation and promotion of social media platforms. If Australian families have been affected, they deserve answers.”

The settlement adds momentum to a broader international debate over online safety, with governments increasingly considering a combination of age limits, platform-level safeguards and stronger enforcement as they develop rules for younger social media users.

Meta stock price