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Meta stock rose after $18bn settlement with 29 US states
Meta agreed to caps and default safety controls for teen use, while the $18bn cost is tied partly to deals with rivals including YouTube and TikTok.
Meta’s settlement with 29 US states over allegations that its Facebook and Instagram platforms harmed children did not trigger a selloff in the stock market, according to the Guardian Business. Meta stock rose after the announcement, jumping about 5% before settling at a gain of just over 1.25%.
The outlet reports that Meta agreed to changes affecting how young people can use its platforms. Those include a two hour daily cap on use, restricted access during the night and the school day, removal of automatic display of likes, and safety and parental supervision measures becoming the default rather than opt in add ons.
While campaigners hailed the resolution as a victory, the article frames the deal as less financially painful for Meta than the headline number suggests. The Guardian Business says the $18bn settlement is less than a month’s revenue and comes with a 10 year payout window.
The report also notes that nearly a third of the settlement amount is contingent on Meta’s rivals, including YouTube and TikTok, agreeing to similar terms. The article suggests this structure reduced the immediate downside risk perceived by investors.