Meta has agreed to a landmark settlement worth up to $16.68 billion to resolve claims brought by US states alleging that Facebook and Instagram were designed to encourage addictive use among children, misled users about platform safety and improperly collected personal data from young users.

The settlement goes beyond a financial payment and requires Meta to make changes to how teenagers use its platforms. The measures include limits on daily usage and nighttime blocks intended to reduce the amount of time young users spend on Facebook and Instagram.

The company has also maintained that it has introduced various measures to improve protections for younger users.The federal case included claims brought by California, Colorado, Kentucky and New Jersey, which accused Meta of violating state consumer protection laws.

The settlement allows the company to avoid a prolonged legal battle over those claims and the potentially enormous penalties.The Meta case is part of a much broader legal fight involving major social media and technology companies. Meta, Snap, YouTube and TikTok continue to face thousands of lawsuits in federal and state courts over allegations that their platforms contain features designed to encourage excessive or addictive use among children and teenagers.The settlement follows two major legal setbacks for Meta in New Mexico.