Tennessee will get $751.9 million from Meta settlement
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Tennessee will get $751.9 million from Meta as part of a deal settling a multi-state legal challenge alleging Facebook and Instagram were designed in ways that harm children.
Why it matters: This is social media's version of the landmark 1990s tobacco settlement, a settlement that effectively reshapes the industry and the way young Americans experience some of their favorite platforms.
- The full settlement deal will reach up to $16.7 billion. The Tennessee attorney general's office said this state's portion "will go directly to protecting and restoring the mental health and safety of Tennessee children via Tennessee's new Children's Digital Protection Fund."
What he's saying: "The settlement addresses Meta's role in an industry-wide problem, and now the rest of Big Tech needs to catch up to Meta and implement similar protections," Attorney General Jonathan Skrmetti said in a statement.
Driving the news: Meta agreed to provide compensation to the states for a variety of public health purposes, including crisis intervention services, after-school programs, outdoor activities and youth mental health programming.
- Meta also agreed to limited under-18 users to two hours per day on Facebook and Instagram, block them from accessing the platforms from midnight to 6 a.m., and limit notifications to them during school hours.
- Youth will also be given the option to have a chronological feed, not an algorithmic one — and parents can make it the default option.
- Kids also won't be able to see likes and other reactions on posts.
The intrigue: Alongside the settlement, Meta issued an open letter to TikTok and YouTube calling on them to join in the deal.
About $5 billion of the Meta settlement kicks in only if YouTube and TikTok also settle with states on two conditions:
- Imposing a one-hour daily usage limit, night restrictions, and age assurance features;
- Paying about $5 billion each.