After its landmark US settlement over alleged harm to children, Meta is stepping up the pressure on TikTok, YouTube and Snapchat to also adopt tougher protections for young users.

The move follows an agreement with US state attorneys general under which Meta could pay up to US$17.1 billion, or around A$26 billion, over 10 years to settle claims centreing on Facebook and Instagram.

Under the settlement, Meta will restrict teenagers to two hours of Facebook and Instagram use per day and block access between midnight and 6am, unless parents provide consent. The company will also disable most push notifications to teenagers during school hours and introduce additional age-assurance measures. Meta will also introduce changes including limits on continuous scrolling and greater controls around content and recommendations for younger users.

While the settlement requires Meta to introduce sweeping changes to its platforms, importantly, a significant part of the financial agreement is linked to what its competitors do next.

Meta is guaranteed to pay around US$12.7 billion, however a further US$5.3 billion is contingent on rival platforms adopting comparable safeguards and making similar financial commitments.

The arrangement has prompted Meta to publicly call on TikTok and YouTube to introduce protections. The company argues that young people move between multiple social media platforms so restrictions on only one service would have limited effect.

Meta is also seeking similar action from Snapchat.

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It’s an unusual structure, and one that means Meta could ultimately pay less in the settlement if the other platforms do not agree to comparable measures. Meanwhile a broader industry response would increase the amount Meta pays under the settlement.

Meta is effectively using the settlement to put competitors under pressure to match its new rules, arguing that common standards would prevent one platform from gaining an advantage by holding fewer restrictions for teenage users. 

The issue has commercial implications for all three platforms with an increase in restrictions on teenage users potentially reducing engagement and usage time on social media. This would have a knock-on effect on advertising, which is typically built around user engagement and personalised content.

The Meta settlement does not fundamentally change its advertising model or require the company to abandon personalised feeds across its services. Reports indicate the changes are not expected to have financial implications in that regard to Meta.

The restrictions do, however, mean for Meta that users may simply migrate across to other social media platforms or services with fewer limitations and could be another driver for the company to pressure other services to also impose restrictions and limitations for younger users. 

The settlement covers 47 US states, the District of Columbia and several US territories. Some states, including Florida and New Mexico, are continuing separate legal action against Meta. 

Meta has denied wrongdoing and has not admitted liability as part of the settlement.

The agreement follows allegations that Meta designed Facebook and Instagram in ways that encouraged compulsive use among young people and failed to adequately protect children.

The settlement also comes as social media companies face increasing legal scrutiny over their impact on children and teenagers.

The developments are significant for Australia because Facebook, Instagram, TikTok, YouTube and Snapchat are already operating under strict rules governing social media access for under-16s.

The Australian market could become a test of whether global technology companies can adopt broadly consistent approaches to age assurance and youth safety.

The US agreement could also establish a model for any settlements in the future involving other platforms.

If TikTok, YouTube and Snapchat agree to comparable measures, Meta’s settlement could result in a wider industry shift towards standardised age verification, usage limits and restrictions on how platforms engage with teenagers.

What happens next will be closely watched, with Meta having already made clear that it does not want to be the only major platform bearing the cost of tougher teen safety rules.