Meta’s settlement with 47 states and several US districts and territories over teen safety includes a provision that could significantly raise costs for TikTok and YouTube if they do not adopt similar restrictions, according to the agreement’s terms. The deal, announced alongside an open letter from Meta running as a full-page ad in major US newspapers, calls on its competitors to match new safeguards. Snap, TikTok, and YouTube have not publicly responded to the settlement or to requests for comment.
Under the agreement, Meta will pay at least $12 billion to the signing states, pending court approval. An additional multibillion-dollar payment, however, is contingent on actions from three named “Core Industry Members”: Snap, TikTok, and YouTube. That contingency payment is triggered only if all three implement limits similar to those Meta has accepted, such as daily usage caps and default-off nighttime notifications. Additionally, TikTok and YouTube, which each generate more than $10 billion in annual profits, would need to enter their own settlements with the states for at least as much as Meta’s $5.3 billion contingency payment, with half tied to YouTube and half to TikTok.
If TikTok and YouTube fail to adopt the changes and pay, Meta’s settlement amount drops by $5 billion. That sum is relatively small for Meta, which reported around $15.8 billion in net revenue last quarter, but the provision serves a strategic purpose. It ensures that if teens are limited to two hours a day on Facebook and Instagram, they cannot simply shift that time to YouTube and TikTok, leveling the competitive playing field.
The agreement also includes a clause on age verification that references “reliable age signals shared with Meta by operating systems and app stores operated by Apple and Google.” This does not reduce Meta’s own obligations, but it establishes a framework that could support Meta’s broader push to position Apple and Google as key gatekeepers for age checks. The settlement is structured to be compatible with laws Meta has been advocating for across the country.
Meta now has the opportunity to present itself as a platform preparing to adopt some of the industry’s strictest restrictions for minors, while simultaneously creating pressure on its rivals to match those standards. The deal may also shape future negotiations around kids’ online safety, as it offers concrete steps rather than a general duty-of-care standard. Other platforms could conclude that similar tradeoffs are acceptable, which would mean not only state attorneys general but also Meta could claim a victory from the arrangement.
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