American multinational technology company Meta has agreed to pay up to $18bn over the next decade to settle lawsuits brought by nearly all US states over allegations that Facebook and Instagram were designed to addict children.

The agreement, announced on Wednesday, brings an end to a federal trial in which states accused Meta of harming young users and misleading the public about the safety of its platforms.

Under the settlement, Meta will introduce stricter limits on how teenagers use Facebook and Instagram. Teenagers will generally be limited to two hours of use each day, while access between midnight and 06:00 will be blocked unless parents give permission.

The company will also disable most push notifications to teenagers during school hours and strengthen measures designed to prevent children from accessing age-restricted content.

However, Meta will not be required to abandon personalised recommendations or targeted advertising.

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The company denied wrongdoing as part of the settlement, saying that ensuring teenagers have a safe and productive experience on its platforms is a priority.

Meta is expected to make maximum payments of about $16.7bn to 47 states, Washington DC and several US territories. California could receive about $2.2bn, while New York could receive around $1.1bn.

Another $459m will be paid to resolve state privacy claims connected to the Cambridge Analytica scandal, involving the unauthorised collection of data from millions of Facebook users.

The settlement also includes about $5bn in additional payments that could be made if Snapchat, TikTok and YouTube introduce similar protections for children.

The agreement could have wider consequences for the social media industry, as governments and regulators around the world face growing pressure to protect children from harmful online content and excessive social media use.

Thousands of other lawsuits remain against social media companies, with individuals, schools and government bodies accusing platforms of contributing to a youth mental health crisis involving anxiety, depression and suicide.

Meta has faced several recent legal setbacks over the safety of its platforms. Earlier this month, a New Mexico judge ordered the company to pay $567m and introduce additional youth safety measures.

In March, a Los Angeles jury also found Meta and Google negligent in designing their platforms and ordered the companies to pay $6m to a woman who said she became addicted to Instagram and YouTube as a child.

Meta and Google have said they will appeal those verdicts.

Not every US state accepted the latest settlement. New Mexico and Florida are continuing their legal battles against Meta.

Florida Attorney General James Uthmeier criticised the agreement, saying the payments were insignificant compared with the harm he alleges Meta’s platforms have caused children.

The settlement was approved by US District Judge Yvonne Gonzalez Rogers, who had overseen the federal trial.

The agreement represents one of the largest efforts yet by US authorities to force a major social media company to change how its platforms operate for young users.