Meta’s Settlement with U.S. Courts Regarding the Design of Its Platforms
September 21, 2026
In August 2026, Meta Platforms Inc. (Facebook, Instagram, Messenger, WhatsApp, and Threads) faced two broad rulings regarding the safety and privacy of minors on Facebook and Instagram in the United States. The first was a $567 million judgment in New Mexico, and the second was a multistate settlement in a federal court in California in which Meta agreed to pay up to $18 billion. Both cases alleged that the company designed features to prolong users’ time on its platforms—such as infinite scrolling, autoplay, algorithmic recommendations, and frequent notifications—despite being aware of the potential risks to children and adolescents. The company was also criticized for collecting data from children under the age of thirteen without parental consent as required by U.S. law.
Key Decisions and Obligations. The investigation began in 2021 following the release of the Facebook Files, which revealed that the platform was collecting information from children under the age of thirteen without the parental consent, as required by the Children’s Online Privacy Protection Act (COPPA). The New Mexico ruling classified the platforms as a public health issue and established a cumulative monthly limit of 90 hours for users under the age of 18 over a period of five years. For its part, the federal settlement in California requires payments over the next decade and requires Meta to implement oversight and design changes. Notable measures include a default daily limit of two hours, which can only be adjusted by parents; periodic usage notifications; a nighttime lockout between 12:00 a.m. and 6:00 a.m.; reduced notifications during nighttime and school hours; hiding of “likes” and reactions; restrictions on certain filters; the option to disable autoplay and use a non-personalized feed; enhanced age verification; detection of accounts belonging to children under thirteen; and independent audits.
Legal Implications and Competitive Practices. This is the most significant regulatory outcome in recent times and has introduced new obligations and restrictions for teenage accounts. The main consequence is that the debate shifts from content posted by third parties to the responsibility of the platforms regarding the design of their services. This intervention does not address what opinions may be published nor does it impose a total ban, rather it aims to regulate design-based mechanisms encouraging user retention, compulsive interaction, and the processing of minors’ data. Although Meta denies liability, it accepted the financial and operational obligations. Part of the additional payments depends on other platforms adopting equivalent protections, such as TikTok and YouTube, which could raise safety standards across the entire industry.
Implications for Mexico. These rulings will not have a direct impact in Mexico, but they do set a standard for what other regulatory bodies should consider best practices regarding privacy and platform design, particularly for products and services offered to minors. These rulings serve as a benchmark for regulatory debate at the national level. Any potential legislative drafts in Congress should take note and focus on usage limits, algorithmic design, age verification, parental controls, and privacy, all without confusing product regulation with content censorship.
Verified sources:
Meta Goes to Trial as the World Restricts Social Media for Minors
Meta, Minors, and the New Frontier of Platform Liability – The Game of the New Supreme Court
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