Meta has faced a major blow and agreed to pay $18 billion (equivalent to 1.15 billion rupees), thereby concluding a major lawsuit against it. The company confirmed its agreement to settle the case.
The lawsuit was being heard in Oakland, California, and the litigation will cease after the agreement is reached. Furthermore, Meta will receive relief in another related case.
The main accusation was that Meta intentionally developed features that cause children to become dependent on its platforms. As part of this agreement, the company must not only pay a significant sum but is also obligated to manage its platforms in accordance with new rules aimed at protecting children.
In fact, lawsuits have been filed against Meta in several US courts, and the case in California is one of them. After reaching an agreement, other cases may also receive a favorable ruling for Meta. Moreover, the company will have to comply with new regulatory requirements.
Allegations that platforms like Meta, TikTok, Snapchat, and YouTube negatively affect children's mental health were brought against Meta and other similar services.
In the court where the settlement was reached, it was anticipated that figures such as Meta CEO Mark Zuckerberg would testify, but the hearings were interrupted in the second week due to the agreement being reached.
Lawsuits from California, Colorado, Kentucky, and New Jersey were also included in this case. Dozens of states participated in this process, filing suits three years ago regarding the design of Meta's platform features and the harm caused to children. Although further consideration in 25 other states was initially planned, this agreement will prevent those proceedings from continuing.