Meta’s $18 billion teen safety settlement has a catch: TikTok, YouTube must follow suit

Meta has agreed to an $18 billion settlement to resolve a major lawsuit alleging that its social media platforms contributed to harm among teenagers. But the deal comes with an unusual condition: TikTok and YouTube could determine whether Meta has to pay the full amount.

The settlement, announced on Wednesday, would impose some of Meta's toughest restrictions yet on how teenagers use Facebook and Instagram. At the same time, Meta is asking rival platforms to adopt similar safeguards.

Here's what the agreement means and why TikTok and YouTube are central to it.

What is Meta's $18 billion settlement about?

The agreement resolves a multi-state lawsuit filed in 2023 by a bipartisan coalition of state attorneys general.

The states accused Meta of designing its platforms to be addictive and of failing to adequately address the potential impact on young users. The allegations included claims that Facebook and Instagram contributed to problems such as anxiety, depression and suicidal behaviour among teenagers.

The states also alleged that Meta improperly collected children's personal information.

Meta has agreed to pay up to $18 billion, with the money distributed over the next 10 years. Individuals will not receive direct payments.

Instead, states must use the settlement funds for measures aimed at addressing harms associated with youth social media use. This could include counselling, wellness programmes and after-school initiatives.

Why won't Meta immediately pay the full $18 billion?

This is the unusual part of the agreement.

Meta is initially responsible for around 70% of the settlement, or approximately $12.7 billion.

The remaining $5.3 billion is subject to a condition involving other social media companies.

That portion would be released if TikTok and YouTube collectively pay $5.3 billion in their own settlements and agree to implement specified safety measures for teenagers.

In other words, Meta's full financial obligation depends partly on whether its biggest competitors agree to follow similar rules.

What safety restrictions will Meta introduce?

Under the current agreement, teenagers would face several restrictions on Facebook and Instagram.

These include:

Two hours of combined daily use of Facebook and Instagram

Blocking access between midnight and 6 a.m., although messaging would remain available

Silencing notifications during school hours

Stronger systems to detect users' ages

Default restrictions on beauty filters

More controls over whether users can see likes on posts

If other major platforms adopt the proposed framework, Meta would go further.

The daily usage limit could fall from two hours to one hour for teenagers. The expanded framework would also include measures such as a bedtime “night mode” and age verification.

Why does Meta want TikTok and YouTube to adopt the same rules?

Meta's argument is that restrictions on Facebook and Instagram alone could simply push teenagers toward competing platforms.

For example, if a teenager reaches the daily Instagram limit, they could switch to TikTok or YouTube and continue using social media.

Meta therefore wants the same restrictions applied across major platforms.

Following the settlement announcement, Meta published an open letter addressed to Snap, TikTok and YouTube, asking them to join its proposed safety framework.

“We want to ensure teens benefit from this new industry standard, but we cannot do it alone,” Meta said.

The company argued that the protections would be more effective if its competitors implemented similar measures.

What happens if TikTok and YouTube agree?

If the rival platforms agree to the framework and reach their own settlements, Meta would face additional restrictions.

Most notably, the proposed daily limit for teenagers on Facebook and Instagram would fall from two hours to one hour.

TikTok and YouTube would also have to implement measures including stronger age verification and restrictions on nighttime use.

The arrangement is therefore designed to encourage a broader industry-wide approach rather than leaving Meta to regulate its platforms while competitors remain unrestricted.

Have TikTok and YouTube agreed?

Not yet.

TikTok and YouTube had not publicly committed to Meta's proposed framework following the announcement.

Both companies are also facing their own legal challenges related to children and teenagers.

TikTok recently reached a $400 million settlement with the US Justice Department in a separate case involving children's privacy.