Meta Reaches Settlement Over Social Media Addiction Claims

Meta has reached a settlement in a significant trial involving a coalition of state attorneys general. The trial accused Meta of creating addictive platforms for young users. The settlement requires Meta to make changes to its apps, including Facebook and Instagram, and pay up to $17 billion over ten years.

California Attorney General Rob Bonta announced that these changes will include default daily time limits for users under 18. Additionally, restrictions will be placed on usage during nighttime hours and school days. Meta will need to implement these changes promptly to reduce potential harm from its platforms. Other measures will include bans on certain app features like plastic surgery filters.

The initial lawsuit was filed in 2023 by 29 states attorneys general. However, the settlement now involves 47 U.S. states, three territories, and the District of Columbia. A judge’s approval is pending for the settlement. Furthermore, Meta will pay Texas over $1 billion concerning similar allegations, totaling the payout to just over $18 billion.

California and other states argue that Meta designed features to encourage excessive usage among teens and younger children. The lawsuit also accuses Meta of misleading the public about health risks and collecting data from users younger than 13 without parental consent. The settlement will halt the trial in California, during which Meta CEO Mark Zuckerberg was expected to testify.

Meta’s chief legal officer, C.J. Mahoney, noted that the settlement includes new rules for teens’ social media usage. Mahoney encourages other industry competitors to adopt a similar framework, emphasizing the need for a collective approach as teens use multiple apps. Mahoney specifically called on TikTok and YouTube to follow Meta’s example.

Essential Reads

A look at policy impacting the tech sector:

• AI Regulation Pledge: Eighteen candidates for House, Senate, and gubernatorial roles have signed a pledge for stricter regulations on the AI industry. The AI Pact includes a five-pronged approach to managing artificial intelligence.
• Flock Surveillance Investigation: Sen. Josh Hawley has launched an investigation into Flock Safety’s surveillance network, demanding transparency on who accesses the data collected by Flock cameras.
• Bill Gates on AI: Bill Gates stated that AI could either be a major equalizer or a source of injustice. He emphasizes the urgency for society to confront AI challenges.
• Chinese Hacking Operation: The DOJ disrupted a Chinese hacking operation targeting U.S. agencies, seizing platforms operated by a group linked to Nanjing Xinjiuwei Network Technology Co.

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• Amazon’s Nvidia Chip Purchase: Amazon plans to buy two million Nvidia chips for its data center expansion.

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