Big tech companies with seemingly endless coffers are good at avoiding real punishment, even when they technically lose a major lawsuit. The settlements or fines might sound hefty in such cases, but the amounts are insignificant compared with the company's overall revenue. The settlement that was just reached at the end of Meta's recent social media addiction lawsuit, however, might actually make Mark Zuckerberg wince.

The New York Times reports that Meta will pay up to $17.1 billion after reaching a "dramatic" settlement with 47 states. Plaintiffs accused the social media platform of harming children by creating an addictive environment comparable to that of slot machines. Meta was also accused of violating a law that bans the collection of data from minors without parental consent, and of misleading users into believing its platforms were safe. Though executives at Meta argued that there was no scientific evidence that its social media sites could lead to addiction, plaintiffs countered that internal communications at the company proved Meta was aware of its potential harm to young users.

The settlement falls significantly short of the $200 billion sought by states such as California, Colorado, Kentucky, and New Jersey. Meta is required to pay an initial $12 billion; the additional $5 billion will only be doled out if companies such as Snapchat and TikTok also agree to pay penalties and enact changes on their respective platforms. Still, the settlement figure is significant compared to Meta's profits. 46 billion.

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