17 billion fine and time limit: Meta engages in damage control
Meta must take action: A daily usage limit of two hours for Facebook and Instagram now applies in the USA. In addition, penalty payments of 17 billion US dollars are due. Nevertheless, Meta is lucky.
In the major lawsuit against Meta – 47 of the 50 states were among the plaintiffs – a settlement has been reached. The plaintiff states accused the corporation of actively endangering the mental health of adolescents through Facebook and Instagram. Specifically, this was alleged to occur through addictive features on the portals. The lawsuit is now being dropped. In return, Meta has committed to a penalty payment of 17.1 billion US dollars and several changes to the features of Facebook and Instagram.
Competitors are also expected to pay
The roughly 17 billion dollars are split into several payments. Initially, Meta will pay an amount of twelve billion, spread over ten years. The remaining five billion plus will only become due if competitors agree to similar settlements. This means: SnapChat, TikTok, and YouTube.
Meta insisted on this condition in the deal. Because if Meta is the only company to adopt these new feature restrictions, teenagers will switch to other platforms. This would cause Meta to lose money. This also creates an incentive for other companies to agree to such settlements and "lump-sum fines" as well. The risk that the sued amount would otherwise be higher is significant.
Independently of this penalty, Meta is making a payment to the state of Texas due to similar allegations in a separate proceeding. The money is intended to flow into, among other things, psychological services for adolescents and educational school programs.
What must Meta change on its platforms?
Various things are now changing in the USA. Meta is stopping "doomscrolling," i.e., the seamless and endless scrolling through millions of videos. In addition, the company is introducing a usage limit of two hours per day on its platforms. There are also restrictions regarding time: between midnight and 6 a.m., as well as during school hours until 3 p.m., no notifications will be pushed. In terms of content, Meta is also restricting beauty filters and like counters and is implementing a new, expanded age-verification system. Should TikTok and others also agree to such limits, Meta will even reduce the daily usage time to one hour per day. The whole thing should not initially have any impact on Europe. However, how this will develop further remains unclear.
Conclusion: Meta gets off lightly
Through this settlement, Meta is making certain concessions. However, these are clearly calculated. By doing so, they are ending a proceeding in which a penalty payment of 200 billion was originally demanded. Another proceeding from the state of Tennessee – which concerned consumer rights – was also dropped.
The situation is different for private lawsuits: certain school districts and individuals are also suing Meta, among others. The first proceedings are already beginning in October. Their outcome will take some time and remains uncertain.
I've been tinkering with digital networks ever since I found out how to activate both telephone channels on the ISDN card for greater bandwidth. As for the analogue variety, I've been doing that since I learned to talk. Though Winterthur is my adoptive home city, my heart still bleeds red and blue.
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