Meta reaches $18 billion settlement on child-safety claims, Tennessee AG warns other tech firms
Meta agreed to pay up to $18 billion and implement new safeguards for minors after settlements with 52 state attorneys general, while Tennessee Attorney General Jonathan Skrmetti said the deal could set a precedent for the industry.
Meta announced Wednesday that it has reached a settlement with 52 state attorneys general, agreeing to pay up to $18 billion and to introduce a series of safeguards for users under 18 on Facebook and Instagram. The agreement, which still requires court approval, resolves claims brought by 47 states and includes time limits, nighttime restrictions, stronger age verification and expanded parental controls.
Tennessee Attorney General Jonathan Skrmetti told FOX Business that the settlement should serve as a warning to other technology platforms. > "I think you’re going to see the next domino fall very soon," he said, adding that the deal sets a precedent for holding social-media and artificial-intelligence services accountable for child-facing features. Skrmetti emphasized that the design changes – such as guardrails, time limits and increased transparency – are more significant than the monetary component, noting that the financial penalty is secondary to the “sweeping changes.”
Meta said the payments will be distributed over ten years, with about $12.7 billion allocated to participating states and an additional $5.3 billion contingent on TikTok and YouTube adopting comparable child-safety measures. An independent auditor will monitor Meta’s compliance, and the states could enforce the agreement if the safeguards are deemed insufficient.
The settlement also includes a call for industry-wide adoption of similar protections. Chief Legal Officer C.J. Mahoney said the framework “will empower parents to easily manage how their children access our platforms” and urged peers such as TikTok and YouTube to implement the same safeguards.
Skrmetti warned that companies that have not reached comparable agreements may face increased litigation pressure, stating that “as fewer and fewer participants in the industry have not entered a deal like this, they're going to be under incredible pressure because all of the litigation focus is going to be on them.”