Meta’s settlement with dozens of US states on Wednesday could trigger a wave of similar agreements across the social media industry, forcing TikTok, YouTube and Snap to overhaul their apps for teenagers.

The historic deal centres on accusations that Meta designed Instagram and Facebook to addict young users, harvest their personal information and mislead the public about the dangers. California led the coalition of states that brought the case.

Parts of the settlement depend on whether three major competitors, labelled as “Core Industry Members” in court documents, take matching steps to protect minors.

“This is the right path forward for our whole industry, but this framework will only work if all our peers join us,” said C.J. Mahoney, Meta’s chief legal officer.

Pressure mounts on competitors

California and New York are already pursuing a separate lawsuit against TikTok over similar concerns about youth safety.

Rob Bonta, California’s attorney general, confirmed his office has been in contact with TikTok about the lawsuit and what the state wants to achieve. He added that officials have also spoken with other platforms.

Anne Lopez, Hawaii’s attorney general, said she hopes Snapchat, TikTok and YouTube will “read the writing on the wall and enter into similar settlements”.

Bonta said the settlement should be rolled out “over the coming months”, though exact details remain unclear. If Meta breaks the terms, prosecutors can hold the company in contempt of court.

More lawsuits expected

Legal experts say financial penalties matter less to Meta than the precedent the settlement creates.

A $17 billion fine is modest for a company worth roughly $1,5 trillion with annual revenue of about $200 billion. Investors appeared unconcerned, with Meta’s shares rising 1% on Wednesday.

The real risk is whether this deal opens the door to more legal settlements and forces changes across the industry.

“There will be more settlements in other cases as well because this certainly sets a precedent,” said Vanitha Swaminathan, a marketing professor at the University of Pittsburgh.

Social media companies have typically avoided certain lawsuits in the United States because of free speech protections that shield them from liability. In this case, state prosecutors focused on Meta’s business practices instead.

Settlement reveals courtroom struggles

Vincent Joralemon, a legal expert at Berkeley, told AFP the case could shape how social media is regulated in future.

“Sue them, then have them make the platform changes on their own,” he said. “This is a clever workaround for First Amendment protections that otherwise stymie social media regulations.”

Bonta noted that Meta chose to settle halfway through testimony from Adam Mosseri, who oversees Instagram, and before chief executive Mark Zuckerberg was due to take the stand.

Mosseri admitted in court on Tuesday that he promoted safety tools for teens without revealing how few young people actually used them during early testing several years ago.

“The trial did not go well for Meta,” Bonta said.

Thousands of lawsuits against social media companies over alleged harm to young people are working their way through courts across the United States. Earlier this year, Meta and YouTube were found liable for causing harm in a Los Angeles case and ordered to pay $6 million to a young woman. Both companies plan to appeal.

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