Texas gets $1 billion in landmark Meta settlement
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Sarah Grillo/Axios. Stock: Getty Images
Texas will receive more than $1 billion as part of a settlement with Meta over allegations that Facebook and Instagram were designed in ways that harm children.
Why it matters: The deal will bring funding for youth programs in Texas while reshaping how children use some of the world's biggest social media platforms.
- The broader national landmark settlement, worth up to $16.7 billion, has been compared to the landmark 1990s tobacco settlement for its potential to reshape an entire industry.
Driving the news: Meta agreed to compensate states for a variety of public health programs. In Texas, that includes youth mental health and crisis services, digital literacy initiatives, after-school programs and school grants.
- Meta also agreed to limit users under 18 to two hours per day on Facebook and Instagram, block access from midnight to 6am and hide likes and other reactions on posts.
- Plus, it will limit notifications during school hours, as schools have increasingly restricted cellphone use to curb classroom distractions.
- Young people will also be given the option to have a chronological feed rather than an algorithmic one — and parents can make it the default option.
What they're saying: Texas Attorney General Ken Paxton called the agreement "a historic settlement and a major win for the safety of Texas children."
The intrigue: Alongside the national settlement, Meta called on TikTok and YouTube to adopt similar protections, saying the measures "will only be truly effective if we work with our peers."
- About $5 billion of Meta's settlement is contingent on TikTok and YouTube reaching their own deals with states, including one-hour daily limits, nighttime restrictions and age-assurance measures and paying about $5 billion each.
What's next: The deal is expected to end the trial with a judge's approval.