The move comes as parents press for stronger protections.
eSafety says under-16s are still keeping or creating accounts, despite millions being removed or restricted.
The move by the parent company of the sites is in protest of Australia's new age verification laws.
There are reports children are being approached and groomed online by predators.
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It comes as the platform promotes new tools for parents.
The terms of the settlement have not been announced.
Families say under-16s were back on the app within minutes.
