Meta settlement opens new front in global fight over social media harm

Meta's move to restrict teenagers' use of social media in the U.S. shows companies have tools to better protect young people online, Australian officials said on Thursday, as the country grapples with patchy enforcement of restrictions at home.

Meta's META.O up to $18 billion settlement with nearly all U.S. states over social media harm to teenagers has opened a new front in a global government fight to protect children and curb addiction to platforms such as Facebook and Instagram.

Governments around the world are trying to curb children's access to harmful online content, including a world-first ban in Australia late last year on social media for children under 16.

Australian Communications Minister Anika Wells said social media companies "have the tools at their disposal to protect young people from their addictive features but have chosen not to use them".

"That's why Australia took world-leading action to create a minimum age for social media, and we are proud that more than 20 countries are joining us," she said in an email to Reuters.

Meta agreed to pay up to $18 billion over a decade and limit how teenagers use Facebook and Instagram under an agreement with nearly all U.S. states to resolve claims that it designed those platforms to addict children. Meta denied wrongdoing in agreeing to settle.

The deal brings sweeping changes to Meta's Facebook and Instagram platforms in the United States, including imposing a default two-hour limit on its apps for users under the age of 18.

In South Korea, the media regulator said some of Meta's measures should be applied to young users worldwide, rather than just in specific markets.

"Improvements to features that may encourage excessive use or addiction, such as algorithm-based content recommendations, disclosure of engagement metrics such as 'likes,' and push notifications designed to encourage users to log in, would ideally be applied to youth users worldwide," it said.

Malaysia, which has barred those aged under 16 from registering accounts on social media platforms, said: "We welcome this latest decision in the U.S. courts as a positive sign that social media platforms must be held accountable for what takes place on their platforms."

European Commission spokesperson Thomas Regnier said it was in constant dialogue with Meta and the company "still has the possibility to offer commitments in the EU."

Enforcement of similar restrictions in Australia has, however, been patchy so far.

Early evidence suggests the law has been undermined by weak age-verification systems, with multiple studies, including from Australia's internet regulator, showing 80% of minors were still on social media months after the ban took effect in December. That prompted lawmakers to double the maximum fine and increase regulator powers.

As governments worldwide seek social media curbs, Poland's minister of digital affairs said he has asked the European Commission to impose a €250 million ($291 million) fine on Meta.