Meta and TikTok settle with states over kids' safety, and the deals have odd rules

Meta and TikTok have each settled with state attorneys general over child safety. Both deals include product changes aimed at teens. They also contain an unusual twist: Meta will pay states an extra $5 billion if its rivals agree to similar rules. A close read published by Tech Policy Press says it has found no earlier example of that.

What the deals say

On August 26, Meta settled with 51 attorneys general. It agreed to product changes, outside audits and payments to the states of at least $12 billion. A month later, TikTok settled with Alabama. Alabama gets $116.2 million now and up to $183.8 million more if enough other attorneys general settle with TikTok.

• Meta's deal covers 47 states, plus DC, the Northern Mariana Islands, American Samoa and Puerto Rico.
• On average, each of the 51 gets about $235 million now and a possible $333 million in total.
• Meta also settled older Cambridge Analytica privacy claims for $459 million, split among most of those states.

Who stayed out

Three states did not join Meta's deal. Texas reached its own settlement for $1 billion. New Mexico has won several cases against Meta, including a $25 billion judgment. Florida is still in court and accused the others of settling for "peanuts."

The odd rules

Meta has agreed to limits on teens' nighttime access and daily use. If TikTok, Snap, YouTube and future large competitors adopt similar limits, a tougher second phase of limits can kick in. The deal lasts ten years. Meta's first limits last five years, but rivals have ten years to join.

Meta also gets protection. If a settling state asks less of a competitor, Meta can ask for the same lighter terms. The review says TikTok's product commitments are weaker than Meta's, and its filing drew far less attention.

Why critics are uneasy

The author argues that these private deals let governments reach results that might be struck down as unconstitutional if passed as laws, because of free speech limits. Affected users, including children, get no real chance to challenge them. The review says the changes may or may not make kids safer, but carry costs for free expression, privacy and competition.

What happens next

The review says the settlements may face major First Amendment lawsuits and could be copied abroad. It is not yet known whether more states will settle with TikTok, whether rivals will join Meta's rules, or how Florida's case will end.