**Meta Platforms, Inc. (META) has agreed to pay approximately $18 billion over the next decade to settle allegations from a bipartisan group of U.S. attorneys general that Facebook and Instagram are designed to be addictive to children and teens. This settlement includes $12.7 billion guaranteed and $5.3 billion contingent on competitor compliance. As part of the agreement, Meta will implement stricter safeguards such as daily usage limits and enhanced parental controls.**
**The company is expected to record $10 billion in legal expenses during the third quarter of 2026, although its overall financial guidance remains unchanged. While this legal settlement is significant, it is unlikely to severely impact Meta’s core advertising business, as its tailored feeds and ad-targeting models remain intact. The agreement may prompt increased scrutiny on other social media platforms like Alphabet Inc. (GOOGL), TikTok, and Snap Inc. (SNAP) as regulators focus on youth safety.**
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