Meta's $18 Billion US Settlement: Global Impact and Pending Lawsuits
Aisha Down
Meta's $18 billion settlement with 29 US states over addictive design could set a precedent for other governments, while lawsuits against the company remain pending in Kenya, the Netherlands, and the EU. The deal includes changes to platform features but is far less than the $200 billion initially sought.
On August 26, Meta reached a settlement in a lawsuit filed by 29 US states, which accused the company of designing addictive products that ensnare young people. Under the agreement, Meta will pay $18 billion and modify certain platform features in the US. California's Attorney General called it a victory that could make a "big difference for children and families."
However, in other parts of the world, individual lawsuits against Meta remain unresolved. Some governments may seek similar concessions following the US settlement.
The deal is seen as a win for both sides. For the US, the jury did what Congress could not—impose controls on a major tech company. For Meta, its stock rose shortly after the agreement was announced, and CEO Mark Zuckerberg avoided appearing in court. The $18 billion figure is far lower than the $200 billion requested by the states or the maximum $1.4 trillion Meta had mentioned in court filings.
The changes Meta has committed to in the US, such as limiting daily use to two hours for users under 18 and blocking overnight access, could also become a standard that other governments demand. The UK had planned to ban social media for those under 16, while Australia has also achieved similar limits through regulation.
The lawsuit by Abrham Meareg in Kenya, filed in 2022, has yet to go to trial. Meareg's father, a chemistry professor in Ethiopia, was shot dead in 2021 amid the civil war. Meareg alleges that Facebook's algorithm actively promoted posts calling for his father's killing and that the company failed to act despite repeated requests to remove them. After years of legal hurdles, a Kenyan high court recently allowed the case to proceed, and it could go to trial next year.
Rosa Curling, co-executive director of Foxglove, the organization supporting Meareg, said: "Meta's lawyers spent years trying to prevent this important case from going to trial; fortunately, they failed. We hope the news from the US signals that Mark Zuckerberg's time is finally over."
In the Netherlands, the nonprofit Repro Uncensored praised the US settlement as a "major victory." The organization is suing Meta over alleged discrimination against accounts related to the LGBTQ+ community and plans further action in other European countries. CEO Martha Dimitratou stressed that the next phase must address not only addictive design but also algorithms, discriminatory moderation, and automated decisions.
The European Commission issued a charge sheet against Meta in July, arguing that features like infinite scroll contribute to "unhealthy habits and compulsive use." This investigation, launched in 2024, could lead to broader changes in Europe.
Meanwhile, a class-action lawsuit by Rohingya refugees against Meta, alleging the company contributed to genocide in Myanmar, was dismissed earlier this year. Meta is also reportedly receiving support from the Trump administration in opposing EU regulations.
Arturo Béjar, a former Facebook employee and whistleblower, commented on the new limits: "That's equivalent to saying: You can smoke as many cigarettes as you like for two hours a day. It doesn't make cigarettes safer."
Meta declined to comment on the lawsuits by Meareg and Repro Uncensored. Previously, the company rejected accusations of inciting violence in Ethiopia and Myanmar, stating that claims they prioritize profit over safety are "untrue." Regarding the Meareg case, Meta said they have staff with local knowledge to "detect violating content" in Ethiopia.
Meareg said he believes Meta expects him to give up, but he remains determined: "They don't know how determined I am to get justice. That's what you do for the people you love. I love my father with all my heart; he needs justice, a public apology. There must be accountability."