Meta will impose strict time limits, overnight blocks and tougher age checks on teenage Facebook and Instagram users under a landmark US court settlement worth up to A$23.6 billion.

The agreement ends a federal trial in California brought by 29 US states, which accused Meta of deliberately designing addictive platforms that harmed children’s mental health and unlawfully collecting data from users under 13.

Meta denied wrongdoing but agreed to pay up to US$18 billion (A$23.6 billion) and make major changes to Facebook and Instagram across the US. The settlement remains subject to court approval.

Under the proposed measures, children will be limited to two hours of daily use, with prompts encouraging them to take a break after 15 minutes. Access to feeds will be blocked between midnight and 6am, while notifications will be disabled from 10pm to 7am.

Push notifications will also be suspended during weekday school hours, between 8am and 3pm.

Meta must introduce stronger age-assurance systems, improved parental controls and additional safeguards against content involving bullying, eating disorders, suicide and self-harm.

Features accused of encouraging unhealthy social comparison, including beauty filters and visible “like” counts, will also be restricted or removed for younger users.

An independent auditor will assess Meta’s compliance, with implementation overseen by the states involved in the legal action.

The requirements initially apply for five years. However, reports suggest the daily limit could fall to one hour and remain in place for 10 years if TikTok, Snapchat and YouTube adopt similar measures.

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Meta chief legal officer CJ Mahoney called for an industry-wide response, arguing that teenagers move between dozens of apps and protections would be less effective unless rival platforms followed suit.

The changes are currently limited to the US, with Meta yet to announce whether they will be introduced in Australia. However, the settlement comes as Australia advances its own restrictions on young people’s access to social media.

The case alleged Meta knew Instagram and Facebook could harm younger users while prioritising engagement and revenue. Chief executive Mark Zuckerberg had been expected to testify before the settlement brought the trial to an early end.