Meta agreed to an $18 billion settlement over allegations that Instagram and Facebook used engagement-focused designs that harmed younger users, while denying wrongdoing. The agreement requires a two-hour daily usage limit for under-18 users, removal of certain cosmetic filters and tighter age-verification measures. Meta will pay over 10 years, record a $10 billion legal charge in the third quarter and leave its July guidance unchanged. Full payment is conditional on YouTube and TikTok making similar changes. Morgan Stanley said resolving the case could precede new products, while Needham maintained a hold rating and warned that spending across chips, infrastructure, software, advertising tools, assistants and hardware could dilute management focus as capital expenditure reaches up to $145 billion.