Meta's $18 billion social media settlement by the numbers
Published in Business News
Meta Platforms Inc.’s plan to pay up to $18 billion in a sweeping settlement with almost every U.S. state will resolve a slew of legal claims related to teenage users on the company’s social media platforms.
But there are strings attached.
Of the overall amount, the company has pledged to shell out about $12.7 billion in installments to states over the next 10 years as a starting point. But Meta said it will pay out an additional $5.3 billion if other social media companies ink similar deals with state authorities.
Here’s the breakdown:
$16.7 billion
The bulk of the money would be directed to 47 states, Washington, DC, and three U.S. territories over a period of 10 years, according to the agreement.
The payout resolves a trial in Oakland involving 29 states that began last week, as well as separate legal cases and investigations being pursued by other state attorneys general relating to teen users on Facebook and Instagram.
The money can be used for any remedial purpose determined by each state, including: crisis intervention services, after-school programs, digital wellness, youth mental health programming or other uses.
$459 million
The settlement also includes a $459 million chunk to resolve states’ privacy claims against Meta related to years-old lawsuits and investigations around Cambridge Analytica, in which the consulting firm collected personal data of Facebook users during Donald Trump’s 2016 presidential campaign.
$1 billion to Texas
Texas Attorney General Ken Paxton announced on Wednesday that he’d reached a $1 billion settlement agreement with Meta. The company told reporters that the deal with Texas was struck separately from the broader agreement, but it’s part of the overall $18 billion package.
$75 million in legal fees
Within 30 days of the agreement taking effect, Meta has agreed to pay the states $75 million to cover litigation costs. The states are also authorized to use their share of the $16.7 billion disbursement to cover those costs.
TikTok, YouTube and Snap
Meta and state attorneys general said Wednesday the settlement is designed to get other social media companies to make changes to their platforms and agree to compensate states in similar arrangements. TikTok, Alphabet Inc.’s YouTube and Snap Inc. separately face legal actions by a number of attorneys general.
Meta said it wouldn’t pay the final $5.3 billion of the total unless TikTok and YouTube agree to make comparable payments to states. Meta said the portion is also contingent upon those platforms, as well as Snap, imposing daily limits for teen users and reducing notifications during evening hours, in addition to shoring up their age verification measures. Representatives of for the three companies didn’t respond to requests for comment.
Florida, New Mexico not included
The only states that aren’t part of the deal are New Mexico and Florida. New Mexico secured almost $1 billion in payouts after winning a trial against Meta earlier this year. Florida Attorney General James Uthmeier said Wednesday’s settlement is insufficient.
“The payouts are peanuts compared to the profound harms Meta’s profit-driven addictive features inflicted on kids, and a slap on the wrist for a trillion-dollar corp that’ll pay more to lawyers than to the states,” Uthmeier said in a social media post. “We’ll see them at trial.”
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