Meta’s agreement to pay up to $18 billion and overhaul its platforms could become the first falling domino in a wider reckoning for Big Tech.
Tennessee Attorney General Jonathan Skrmetti warned [1] that competing social media and technology companies should be watching closely as states demand stronger protections for children.
“I think you’re going to see the next domino fall very soon,” Skrmetti told FOX Business.
He argued that the agreement could establish a powerful standard for holding social media companies, artificial intelligence developers and other platforms used by children accountable for dangerous design choices.
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Meta announced the agreement Wednesday after negotiations with 52 attorneys general representing states, United States territories and Washington, D.C.
The settlement, which still requires court approval, resolves claims brought by 47 states over allegations that Facebook and Instagram harmed young users and encouraged addictive behavior.
“The most important thing is that all of the design decisions that made Instagram dangerous for kids are being addressed,” Skrmetti said.
The settlement reaches beyond a large financial penalty and forces Meta to confront platform features that officials say kept children scrolling while exposing them to mental health risks.
Users under 18 would receive time limits, nighttime restrictions, stronger age verification measures and broader parental controls.
Parents would also gain more authority over what their children encounter online, a welcome change after years of technology companies behaving as though Silicon Valley engineers knew better than American families.
“The goal is to eliminate all of the triggers for mental health problems that were baked into the platform as a result of the effort to make it so addictive,” Skrmetti said.
That language goes directly to the heart of the states’ case, which focused on deliberate design rather than accidental consequences.
Skrmetti emphasized that changing how Facebook and Instagram operate matters more than simply extracting billions from Meta.
“They agreed to some pretty sweeping changes, and that’s way more important than the money,” he said, pointing to safeguards that could reshape how technology companies treat young users.
Under the agreement, Meta would distribute payments annually across 10 years, with participating states receiving about $12.7 billion.
Another $5.3 billion would become available only if TikTok and YouTube adopt specified protections for children and provide matching payments, giving those companies a sizable incentive to stop dragging their feet.
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An independent auditor would examine Meta’s implementation and continued compliance with the settlement.
“If kids are still at risk, if some of these features aren’t addressed in a way that meaningfully changes the danger of the platform for young users, the auditor will be in a position to make that public,” Skrmetti said.
States could seek enforcement if Meta fails to honor the agreement, meaning the promised reforms are not supposed to be another polished corporate announcement that disappears once public attention moves elsewhere.
Companies without similar agreements may also find themselves facing increasingly concentrated litigation from state officials.
“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,” Skrmetti said.
For TikTok, YouTube and other major platforms, the comfortable era of vague promises may be closing quickly.
Skrmetti also issued a direct warning to technology companies that knowingly exploit the vulnerabilities of young minds.
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“If they’re designing exploitive elements into the platform that take advantage of kids and the vulnerabilities of kids’ brains, there will be consequences down the road for that,” he said.
The attorney general credited the broad political coalition that negotiated the agreement despite deep disagreements on many other issues.
“I think it’s kind of inspirational that you had people who have very different political opinions come together and work to do right by America’s kids,” Skrmetti said.
Meta maintained that the settlement expands work already underway to protect teenagers and provide parents with greater control.
“Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta,” the company said, while Chief Legal Officer C.J. Mahoney urged other platforms to follow the same framework.
“The framework we’ve negotiated will empower parents to easily manage how their children access our platforms,” Mahoney said.
YouTube and TikTok did not immediately provide comments, but the message from state officials was unmistakable: Protect children voluntarily, or prepare for the next domino to fall.