Meta pays $18 bln to secure social-media status

As a template, the settlement would be worse for Meta's rivals. Restrictions focused on short-form content are particularly bad for TikTok and Snap, which don’t have the ballast of restrictions-exempted WhatsApp or Facebook Messenger. A slightly smaller proportion of teens uses Snap versus TikTok or Instagram, according to Pew Research surveys, but they're worth more when taking size into account. In that context, Meta is paying a small price to secure its industry status.

Meta Platforms agreed on August 26 to pay as much $18 billion over a decade to settle litigation with 48 U.S. states and Washington over alleged harm the owner of social-media networks Facebook and Instagram caused to children.

The company separately settled lawsuits led by a group that included California, Colorado, Kentucky and New Jersey, which sought $200 billion in damages, as well as a case filed by Texas.

As part of the deal, Meta agreed to make changes to its apps that involve phased age verification efforts and restrictions on teen usage. Of the $18 billion, almost $1 billion is for Texas alone. Also, $5 billion is contingent on rivals, including Snap and TikTok, implementing similar changes to their apps.