Meta has settled a multi-state child safety lawsuit brought by 52 state and local Attorneys General, with the settlement valued between $12.7 billion and $18 billion depending on how it’s calculated. According to Meta’s press release, the company is paying approximately $18 billion, though the consent judgment caps the total at $16,680,647,753.21. Meta will take a $10 billion legal charge in Q3.
Under the settlement, Meta agrees to implement various child safety features on its platforms. Notably, the agreement also requires Meta to “encourage” YouTube and TikTok to enable the same safety features—a structure that means if competitors comply, Meta must pay more.
The settlement has drawn criticism from digital rights organizations. The Electronic Frontier Foundation warns that the agreement will give young users “less access to Meta products” and “a lesser ability to exercise their rights to speak, access information and art and culture, associate and form communities, and play.” The EFF also notes that the settlement embeds age assurance across products, mandating collection of additional personal information from users of all ages and potentially compromising privacy and anonymity while increasing exposure to data breaches and government data requests.
Fight for the Future raised similar concerns, stating that “pushing for more censorship, age-gating, and surveillance of young people at the hands of the same Big Tech companies that have already harmed young people is not the answer.” The organization warned that online ID checks and age-gates could expose users to more data collection and leaks, and allow Meta to “offload the burden” while “bringing everyone else down with them.”
Techdirt’s analysis suggests the settlement represents a form of regulatory capture. According to the source, Meta has long sought legislation that only large companies could comply with, creating competitive barriers. The article notes that many features mandated by the settlement likely could not have been imposed by legislation without violating the First Amendment, but emerging from a settlement, they carry legal weight. By requiring competitors to adopt identical practices, the agreement effectively sets industry standards that smaller rivals may struggle to meet.
Key facts
- Meta settled a lawsuit with 52 state and local Attorneys General over child safety, paying $12.7-$18 billion
- The settlement requires Meta to implement kid safety features and encourage YouTube and TikTok to do the same
- Age assurance requirements will mandate collection of additional personal information from users
- Civil liberties groups warn the settlement increases surveillance and reduces user privacy protections
- The settlement may create regulatory barriers that disadvantage smaller competitors