Well, that was quick. Not even a quarter of the way into an expected 19-day federal trial over Meta's alleged failure to protect young users, the social media giant agreed to settle the case.

The company has agreed to pay up to $16.7 billion to 51 US states and territories and make substantive product changes for how teens engage with its platforms. The settlement is a stunning development; while other social media services, including YouTube, Snapchat, and TikTok, resolved similar lawsuits out of court, Meta has repeatedly chosen to go to trial.

Meta’s first federal trial on the youth issues began last week and threatened to leave the company on the hook for what it estimated to be over $1 trillion in damages. The company's own daily limit will also go down from two hours to one.

The product changes that Meta has agreed to will apply to Instagram and Facebook and will focus on both features and time limits. Parents will also have more control over how teens interact with Instagram and Facebook, including setting the default experience to a chronological feed rather than algorithmic.

While around $12.7 billion of the payout is guaranteed and will be paid out over 10 years in annual installments, the remainder is contingent on other “core industry members”—defined as Snap, TikTok, and YouTube—implementing similar safeguards. Meta says those changes include a one-hour daily limit, a comparable night mode, and age assurance measures.