How Meta's settlement affects D.C.
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Meta agreed to a roughly $17 billion settlement over allegations Facebook and Instagram were designed in ways that harm children — a deal that could send hundreds of millions of dollars to the DMV.
Why it matters: This is social media's version of the landmark 1990s tobacco settlement, effectively reshaping the industry and the way young Americans experience some of their favorite platforms.
Driving the news: Meta agreed Wednesday to provide compensation to dozens of states and D.C. for a variety of public health purposes, including crisis intervention services, after-school programs, outdoor activities and youth mental health programming.
- D.C. will get up to $129 million, announced the city's attorney general Brian Schwalb, paid out over ten years.
- Half of the funds need to be spent on "abatement," said a spokesperson for Schwalb. The broad label includes mental health support like expanding the suicide hotline, public health messaging, youth mental health programming, after school programs and more.
- Virginia will receive $353 million, while Maryland is set to get $327 million.
How it works: In terms of new platform rules, there are many. Meta agreed to limit under-18 users to 2 hours per day on Facebook and Instagram, block their access from midnight to 6 a.m., and limit their notifications during school hours.
- Kids will also be given the option to have a chronological feed, not an algorithmic one. Parents can make it the default option.
- They also won't be able to see likes and other reactions on posts.
"This is a monumental public health victory for young people in D.C. and across the country," Schwalb said in a statement.
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.
What's next: The deal is expected to end the trial with a judge's approval.