Meta capitulates and will pay 17 billion to avoid a trial that would have revealed its darkest side

WashingtonMeta avoids a historic trial and dodges the risk of reliving the 90s setback against tobacco companies. Mark Zuckerberg has agreed with 47 states, the District of Columbia, and U.S. territories to pay approximately 17 billion dollars – about 14.3 billion euros – in exchange for dropping the case accusing the technology company of designing addictive social networks for minors and deceiving consumers about the safety of its products.

The agreement, which still needs court approval, also includes significant changes by Meta regarding its products and the possibility that they may cause harm to children. Nevertheless, Zuckerberg still faces numerous cases filed by school districts and individuals, some of which are already scheduled for the coming months.

The owner of Facebook and Instagram capitulated just a week after the trial began in Oakland, California, and claimed there was no way to prove that his social networks had caused harm to minors.

But the prosecution, led by the states of Colorado, California, New Jersey, and Kentucky, focused on another issue: that Meta was aware of the harmful effects its platforms had on minors, but had chosen to prioritize maximizing profits at the expense of children.

The prosecutors' strategy mirrored the legal architecture of the case against the tobacco industry and, instead of trying to prove the extent of Meta's responsibility for the damages caused, it sought to prove that it had chosen to profit despite being aware of the harmful consequences of its products. This is supported by numerous leaks about internal company reports indicating that, for example, the algorithm of its networks encouraged eating disorders in minors.

All in all, this has led Meta to yield this Wednesday to a case that threatened to fuel the social anger already existing against social networks and put them at the center of political debate, as well as erode the company's already tarnished image. "We are announcing today an agreement with a group of 52 attorneys general, from both parties, in U.S. states and territories, including the District of Columbia, to advance our ongoing efforts to support teens and empower parents," the tech company stated in a press release.

As part of this agreement, which is not yet official, Meta will apply an automatic limit to the time that teenage users can be connected: two hours daily, which can only be extended by parents if they give permission. While connected, children will receive periodic notifications of how long they have been on the network. It will also block children's access to the number of "likes" or reactions to posts and strengthen measures to prevent them from viewing inappropriate content, and will put tools at the disposal of parents.

However, as far as is known at the moment, there is not a single mention of how Facebook and Instagram's algorithm works. In 2022, a scandal occurred in the US when it became known that Facebook was aware that it was inciting girls to suffer from eating disorders and that the algorithm was recommending accounts that promoted anorexia and obsession with thinness.

Meta's agreement also threatens to cause a domino effect on other major technology companies, which have also been under public scrutiny and anger for effects similar to those of Facebook and Instagram for some time. In fact, the agreement reached by Zuckerberg's company indirectly affects its rivals Tiktok and Alphabet, the latter being the owner of YouTube. For example, the two-hour limitation for minors could be less if these two companies agree to do the same with their networks.

Although Meta has said it will pay $17 billion, if its competitors also give the green light to the time limitation and agree to pay about $5.3 billion to the states, the company would only have to pay 70% of the initial amount.

Lower than estimated amount

Whether it paid $17 billion or less, this is a much lower amount than the group had initially estimated, which would have ballooned to $1.4 trillion, according to Meta's own calculations. It also lowers the initial calculations by the prosecuting states' attorneys for a possible penalty, which was around $200 billion.

For their part, the prosecutors consider the agreement and withdrawal of the case as a "significant" step. "It goes far beyond what any court has ordered or could order," emphasized Colorado Attorney General Phil Weiser. "The goal of this case was to protect our children: to turn off notifications and alerts at night, and when they are at school, to encourage them to rest from social media, protect them from harmful features, implement age verification technology, and more," Weiser wrote in a statement.