Meta Platforms Inc.Meta agrees to $18B settlement and records $10B legal expenses.
Meta Platforms agreed to pay approximately $18 billion over 10 years to settle claims by U.S. attorneys general that Facebook and Instagram were addictive to children, and will introduce stricter safeguards. The company expects to record about $10 billion in legal expenses in the third quarter of 2026, with other guidance unchanged. Of the settlement, 70% or $12.7 billion is guaranteed, while the remaining $5.3 billion depends on TikTok and YouTube adopting comparable protections. The deal leaves Meta's ad-targeting model largely intact, but could increase regulatory scrutiny on rivals like Alphabet and Snap, whose stocks slipped on the news.
Meta Platforms Inc.Meta agrees to $18B settlement and records $10B legal expenses.
Snap IncIncreased regulatory scrutiny on rivals like Snap after Meta's settlement.
Alphabet Inc Class CIncreased regulatory scrutiny on rivals like Alphabet after Meta's settlement.