Meta may pay up to $18 billion subject to actions by TikTok and YouTube — Fortune
Meta has agreed to a settlement with a group of U.S. state attorneys general in a case concerning child safety on social media. According to the company’s calculations, the total amount of the agreement is up to $18 billion, but $5.3 billion of that amount will depend on actions by TikTok and YouTube, Fortune reports.
Conditional part of the payment
Meta described 70% of the amount, or $12.7 billion, as guaranteed. The remaining 30%, or $5.3 billion, must be paid by the company only if TikTok and YouTube each introduce similar measures to protect teenagers and contribute a corresponding share of monetary compensation.
These measures include a one-hour daily usage limit, a nighttime mode, and age-verification mechanisms corresponding to Meta’s measures. On the same day, the company published an open letter calling on TikTok and YouTube to join these rules. Both platforms did not respond to Fortune’s request for their position on this requirement.
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Differences in estimates
The attorneys general’s offices cited different amounts. California Attorney General Rob Bonta, whose office led the case, reported payments of up to $17 billion and described Meta’s guaranteed amount as $12.7 billion.
District of Columbia Attorney General Brian Schwalb said the guaranteed minimum is $12.1 billion, while another $5 billion depends on the participation of other platforms. Connecticut Attorney General William Tong put the guaranteed amount at $12.19 billion. According to his version, TikTok, YouTube, and Snapchat must agree to comparable safety measures and monetary compensation for the additional payment. Meta named only TikTok and YouTube as a condition in its statement.
Lawyer Jess Nall of Withers noted in a comment to Fortune that the payments are spread over 10 years and, despite their significant nominal size, are smaller compared with Meta’s annual revenue and market value. She also said that the settlement does not end thousands of lawsuits brought by private plaintiffs in similar cases.
