Meta has agreed to settle a case with US states over allegations that Facebook and Instagram are harming children and teenagers, but it comes with an unusual condition. The tech giant can avoid paying billions, depending on what changes its rivals make to their platforms.
As a part of the settlement, Meta has agreed to pay $12.7 billion over 10 years. And another $5.3 billion is contingent on whether Snapchat, ByteDance's TikTok, and Alphabet's Google and YouTube impose similar protections for children.
That means the headline figure of up to $18 billion does not necessarily reflect the amount Meta will ultimately pay.
Though there has been no immediate reaction to the matter from Snapchat, ByteDance's TikTok, Google, or YouTube, the case puts pressure on how other social media platforms respond to growing concerns over child safety.
Noting that no company wants what Meta faced in Oakland, Rob Lalka, a professor of practice in management at Tulane University, told CNBC, “I’d expect TikTok, YouTube, and Snapchat to make changes before they ever face that scene. These platforms depend entirely on being trusted, by parents, by users, by advertisers, and the settlement reflects a business decision about reputational risk, which now the boards of these other companies must also make.”
Adding to it, said James Speta, a Northwestern University law professor who specialises in telecommunications and internet policy, as reported by Reuters, "These restrictions will change the experience on Instagram and Facebook, and they are designed to reduce engagement."
A Meta spokesperson said the company was "hopeful" Snap would make similar changes.
Further, the tech giant denied wrongdoing in agreeing to settle. The total payout represents about three to four months of profit and about one month of revenue for Meta.
"Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta," the company said in the blog post. "We want to get this right for parents and teens."
Meta and YouTube lost in a social media addiction trial in Los Angeles earlier this year, where the plaintiff claimed her mental health was damaged by some of their addictive features
Meta also lost a separate case brought by New Mexico Attorney General Raul Torrez, after a court found that it violated the state’s child-safety laws and ordered it to pay over $900 million in penalties.
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br>
She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br>
As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br>
She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br>
Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. <br>
She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br>
She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance. <br>
Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.
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