Meta Platforms, the parent company of Facebook and Instagram, has agreed to an $18 billion, decade-long settlement with nearly all U.S. states over allegations concerning the impact of its social-media platforms on children.

Meta has denied wrongdoing but agreed to the settlement to resolve the long-running legal dispute.

The agreement is one of the largest settlements involving a technology company and could require Meta to make changes aimed at reducing potentially harmful use of its platforms by younger users.

The company will also face restrictions connected to how its services are used by teenagers.

Despite the size of the settlement, the financial impact is expected to be manageable for Meta because the company generates tens of billions of dollars in annual earnings.

Reuters reported that the agreement is unlikely to significantly affect the company’s advertising business, which remains its primary source of revenue.

The settlement is also significant for the wider social-media industry.

Regulators and governments have increasingly been examining how platforms such as Facebook, Instagram, TikTok and YouTube affect young users.

Meta’s shares were relatively positive following the announcement, reflecting investor relief that the company avoided potentially much larger financial penalties and a prolonged trial.

However, the company’s legal challenges are not completely over.

Separate cases involving Meta remain active in some U.S. states and in Europe, meaning the company will continue to face scrutiny over its approach to children’s safety and online advertising.

Sources: Reuters & Fortune