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Meta’s Settlement Names Three Companies That Never Signed It

A court said fixing Meta’s design needed legislative or executive action, and would unfairly burden one firm. Fifty-one attorneys general answered both objections, then stopped where the court stopped.

Josh LynwoodFounder
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Where Things Stand

The Instrument Is a Contract, Not a Statute and Not an Injunction

The instrument is a contract, not a statute and not an injunction. Fifty-one state and territorial attorneys general executed it with Meta on Aug. 25, 2026, and announced it the next morning. Judge Yvonne Gonzalez Rogers entered it as a consent judgment on Aug. 26, which sets the Effective Date at Aug. 27 and starts the 10-year term. Almost every obligation is written as an offset from that date, and as of this week those offsets resolve to calendar dates.

  • Aug. 25, 2026 (What Was Executed). A settlement agreement signed for Meta by Chief Legal Officer C.J. Mahoney and Chief Compliance and Privacy Officer Michel Protti. The text separates execution from announcement: "August 25, 2026" appears 52 times, once in each signature block and once more, while "August 26, 2026" appears once. Section I.G sets the Agreement Term at "10 years from the Effective Date except as otherwise specified." Section X.F waives any right to argue that a term "is unconstitutional or is preempted by, or in conflict with, any current or future law."
  • Filed and Entered the Same Day (N.D. Cal., Nos. 4:22-md-03047-YGR and 4:23-cv-05448-YGR). The agreement reached the federal docket on Aug. 26 as ECF 572-1, an exhibit to a motion. The judgment it exhibited was captioned "META AND STATE ATTORNEYS GENERAL [PROPOSED] CONSENT JUDGMENT," and its date line read "DATED and entered this _______ day of ________, 2026," above an unsigned line for Judge Yvonne Gonzalez Rogers. The version she signed that afternoon, ECF 3451, drops the bracketed word and closes "IT IS SO ORDERED. Date: August 26, 2026." Section X.H made that motion due Aug. 26, the day this publishes. It is the one place in the agreement commanding a party to act on a date certain. Four other calendar dates appear and none commands anyone to act.
  • The Same Two Notification Windows Appear in Both Instruments. On Aug. 6 the New Mexico court ordered Meta to eliminate under-18 push notifications "from 10:00 PM to 7:00 AM" and "from 8:00 AM to 3:00 PM ... during the academic year," at paragraph 168. The settlement disables teen push notifications across the same two windows, at Sections II.B.2.a.ii and II.B.4.a with School Hours at Section I.AAA. Paragraph 160 opens by recording the court as "in large measure, adopting Meta's proposals," and finds Meta's proposed push-notification measures "compelling." Nothing establishes which took the hours from which. We note the match and assert no cause.
  • New Mexico Is Not One of the 51. The signatories are 47 states, the District of Columbia, Puerto Rico, American Samoa and the Northern Mariana Islands. Florida, New Mexico and Texas are absent. "New Mexico" appears exactly once in the agreement, and not as a signature: it is a case caption inside the Section I.L definition of Cambridge Complaints, the 2021 privacy suit D-101-CV-2021-00132. The Aug. 6 public-nuisance judgment, No. D-101-CV-2023-02838, appears nowhere. New Mexico has no Satellite AG Action under Section I.ZZ and released nothing here. The branch that acted did not include the sovereign whose court had ordered its own remedy first.
  • The Money, as Exhibit B Prints It. The exhibit's TOTAL row gives a guaranteed installment of $1,165,662,174.56 and a contingency installment of $502,402,600.77, each payable 10 times, against a printed maximum of $16,680,647,753.21. The two installments taken 10 times come to $16,680,647,753.30, nine cents more, because the per-state maximum column is unrounded while the installment columns round to the cent. The District of Columbia's release quotes those two columns rather than estimating: the District "will receive at least $90,395,940 and up to $129,356,762." Three primaries give three totals. The agreement prints $16.68 billion. The release announces $17.1 billion. Meta's newsroom says approximately $18 billion. Connecticut prints the guaranteed tranche as $12.19 billion, and that figure reconciles exactly: $11,656,621,745.60 in guaranteed installments, plus the $459,293,017.80 Cambridge Settlement Amount, plus the $75 million cost fund. The headline the states announce folds in a Cambridge Analytica settlement resolving a different set of claims.
Sources10See all 16
Why Name Three Companies That Never Signed?

After Month 24, Parity Runs One Way

Neither Snap, TikTok nor YouTube is bound by this settlement, and all three still move Meta's obligations. Section I.W defines them as Core Industry Members "for so long as the product or service is available to US Teen Users." None is a party to it.

The mechanism runs in both directions, and the two directions do not expire together. Under Section V.B, if Meta grants any other state a lower daily limit or a stricter night mode in a pre-trial settlement, all 51 receive that term within 30 days. Under Section V.D, if a Settling State later reaches a deal with Snap, TikTok or YouTube on terms more favorable to that company, Meta may require the state to modify Meta's own obligations down to match. The first clause runs "within the first 24 months after the Effective Date." So does the monetary parity clause beside it. Section V.D carries no expiry at all, against an agreement term of 10 years. After month 24, parity runs one way.

The money turns on a defined event called Section I.DD. It occurs only when Snap, TikTok and YouTube have each accepted Phase II equivalent time limits, and age assurance no less restrictive than Meta's, subject to "a minimum term of five years from such date, an independent third party audit." It is revocable., and it is a five-lock door with a sixth lock behind it. Each of the three companies must come under The stricter tier of Meta's own obligations, at Sections II.B.2.b and II.B.3.b. Section II.B.1(b) applies it only "whenever, in the 10 years following the Effective Date, Industry-Wide Adoption has occurred and remains in effect." equivalent time limits, by settlement, by statute, or by audited voluntary implementation, plus age assurance no less restrictive than Meta's, plus "a minimum term of five years" under an independent third-party audit, with no carve-outs beyond messaging and long-form video, and no qualifying new entrant left uncovered. Then Section I.U adds a second condition: the rivals must also be "subject to a monetary obligation" to that state at least equal to what Meta owes it in contingency payments. They have to pay the same attorneys general. Meta said so in its own announcement, and the coverage has now caught up.

Four of those locks a company can concede on a roadmap. The audit is the one nobody concedes by accident, which makes it the tell worth watching.

There is also a term the agreement uses twice and never defines. The monetary condition reaches Core Industry Members "with annual profits above $10 billion," a threshold with no definition attached. Meta's public statement names TikTok and YouTube. It does not name Snap.

The states are not being coy about any of this. Connecticut's attorney general, announcing a state share of up to $265.4 million, addressed the three companies directly. "To TikTok, YouTube and Snapchat," he said, "our expectations are clear. You're next." His office's announcement adds that the total rises on comparable safety terms and monetary relief from all three, which is the second condition described by one of the signatories. Note who is on the list: the states name Snap, Meta does not.

    Sources5See all 16
    Intersections

    The Court Named Two Branches. One Had Already Acted.

    A court declining to order a remedy is not a court holding the remedy wrong. When the refusal rests on institutional competence rather than on the merits, the opinion does more than deny relief, because in naming the branch that may grant it the court also describes the kind of instrument that could arrive.

    The three reasons at paragraph 160 are not equal. Institutional competence came first. The one-firm problem came second, and the court put it plainly at paragraph 164: "given the absence of Meta's competitors in this litigation, restrictions imposed on Meta's offering of the aforementioned features could harm the viability of Meta and its platforms." Section 230 of the Communications Decency Act and the First Amendment came third, carried on the word "possibly."

    A settlement signed by 51 state attorneys general is an executive instrument. It answers the first objection by being a branch the court named, and the second through the Industry-Wide Adoption definition at Section I.DD, which conditions about $5 billion of Meta's payment on its competitors accepting comparable rules. The same definition puts a burden on Meta rather than a veto: Meta may waive the carve-out requirement in writing, and "will not withhold consent unless Meta demonstrates that it will be placed at a significant competitive disadvantage." The court named the missing parties. The settlement then named them.

    The court did not leave the line to be inferred. It sorted the four design elements itself. Autoplay, infinite scroll and algorithmic recommendations, it wrote at paragraph 163, are "most closely tied to content presentation because they directly impact the manner in which users are presented with third-party postings and advertising," and are therefore "features with clear Section 230 and First Amendment implications." Push notifications and like counts, at paragraph 165, "are least connected with platform content." The court granted relief on the second pair and refused it on the first. The settlement lands on the same side of the same line.

    One detail belongs here without an explanation attached. The court ordered push notifications eliminated from 10 p.m. to 7 a.m. and from 8 a.m. to 3 p.m. on school days. The settlement disables them in exactly those two windows, in Phase I, conditional on nothing. The court also wrote at paragraph 160 that it was "in large measure, adopting Meta's proposals," and found "Meta's proposed measures to address push notifications" to be "compelling." Whether the hours came from the order, from the same proposal twice, or from convergence, the documents do not establish. We are not going to guess.

    The other branch had gone where neither of the first two would, and it got there first. The Kids Internet and Digital Safety Act, passed by the House, defines a "design feature" as anything that "encourages an increase in or increases the frequency of use or time spent" by a minor, and says the term "includes infinite scrolling or auto play." Platforms must limit them. The chronology runs the other way from what you might expect. The House passed it 267 to 117 on June 29, and the Senate received it on July 13, 24 days before the opinion. The branch the court named had already acted, and the bill was already stalled.

    What would make this wrong

    A court narrows Section V or declines to enforce it against a Core Industry Member, or reads the Section XI.A approval as not reaching it. Testable the first time a state invokes the parity clause.

    Open question

    Can a court enter and enforce a judgment imposing terms it lacked the power to impose, when the parties most affected by it were never parties at all?

    Sources8See all 16
    The Weave

    The Weave maps a single development across domains and across time. Each row follows one domain from where things stand now through the next eighteen months, and expands for the reasoning behind that trajectory.

    Wiiver
    SECTOR / DOMAINclick a domain to expand
    As It Standsthe current status
    Immediate0–6 months
    Near-Term6–18 months
    Business + Markets
    Meta and 51 attorneys general executed the agreement Aug. 25: $11.66B guaranteed, $5.02B contingent, $16.68B printed total. The contingent half turns on rivals.
    What starts the clock
    Entry set the Effective Date at Aug. 27, so the guaranteed stream is now a dated liability: $75M cost fund and installment one on Sep. 28, nine more to follow.
    If a later state does better
    Installment two lands Jan. 15, 2027. For 24 months a richer per-capita deal with a later state forces Meta to top up all 51, capped at the contingency total.
    Snap, TikTok and YouTube never signed but are named in the contract as Core Industry Members. Meta spent announcement day urging two of them to adopt its terms.
    The locks, and a sixth one
    A state's deal with any of the three reaches Meta in ten calendar days. The $5.02B needs all three bound and audited, carve-outs only for messaging and long-form.
    Who sets the benchmark
    The first AG deal with any of the three sets the benchmark. Softer terms let Meta ratchet its own obligations down, on a clock the agreement never closes.
    Government + Policy
    Fifty-one AGs hold Meta's teen design defaults by agreement, not by statute or injunction. A New Mexico court reached the same two notification windows by order.
    Move for entry, or forfeit
    Each state with a pending case must move for entry of its own judgment or forfeit all three payment streams. Up to six AG offices run the deal as a committee.
    Negotiating for two firms
    States now hold the pen on Snap, TikTok and YouTube. Every deal they cut is scored against Meta's terms and can move Meta's own obligations up or down.
    Entered Aug. 26 as ECF 3451. The court invoked Local No. 93: a federal court is more than a recorder of contracts from whom parties can purchase injunctions.
    The holding is narrow
    The MDL judgment is entered; each state's own is not. The court found only that it could not say the agreement violates COPPA, not that it complies with it.
    Where a climbdown surfaces
    A Section V.D climbdown cannot stay private. The judgment reserves the court's power to modify it, so Meta ratcheting its terms down surfaces as a public motion.
    Technology + Engineering
    Age assurance is one of five locks on Industry-Wide Adoption. Section I.DD sets the rivals' bar by reference to Meta's own Section II.A, but only as to ages 13-17.
    Who picks the auditor
    Every near deadline is Meta's own, dated off Aug. 27: auditor selected by Oct. 26, U13 detection by Mar. 1, 2027. None binds a rival, so the lock stays shut.
    When the ceilings bite
    At one year the ceilings bite: 10% and 3% for licensed methods, 14% and 7% for Meta's own. Rivals must accept a five-year audit or Phase II never fires.
    Infinite scroll appears nowhere in the settlement and autoplay only as an optional setting. What it does reach is like counts, cosmetic filters and the clock.
    Four months to ship it
    Pauses at 60 and 90 cumulative minutes and a notice at 15 continuous land Dec. 28. The cap and the midnight to 6 a.m. block bind Mar. 1, 2027.
    The feed stays opt-in
    Teens get prompted every 90 days to switch to an opt-in NonPersonalized Feed. Phase II widens the block to 10 p.m. to 7 a.m. once all three rivals are bound.
    wiiver.co · 6 impacted domains shownWiiverv1 · August 26, 2026
    Looking Forward

    A Judge, an Agency, and a Bill in the Senate

    Almost everything here now has a date. Section I.Y ties the Effective Date to the first business day after the multidistrict litigation (MDL) court enters the consent judgment. Entry came on Wednesday, Aug. 26, so the Effective Date is Thursday, Aug. 27, and the deadlines below resolve to calendar dates rather than intervals. Section X.W moves any obligation falling on a weekend or legal holiday to the next business day, which shifts three of them. What still waits is a federal agency and a bill in the Senate.

    • Entry of the Consent Judgment (Resolved Aug. 26, and It Started Every Clock). The court entered it as ECF 3451 the same afternoon the parties moved, vacated the trial and discharged the jury. Section V, the parity and MFN provisions, arrived as executed. The judgment incorporates Sections II, III, IV and VI of the agreement by name, one at a time, and never names Section V, which reaches the decree through the blanket approval at the judgment's Section XI.A, where the agreement is "approved in all respects." Absence from that list was not omission. One thing the parties did not draft: the court inserted a Section II of its own, a legal-standard analysis, and every later section of the judgment moved down by one. Anyone still working from the proposed version is citing numbers that are off by one.
    • On or About September 10, 2026 (Forecast, Computed From a Notice). Section X.I gives Meta and the Settling States with pending state-court cases "ten (10) business days of the notice provided in Section X.G" to move jointly for entry of a consent judgment in each Satellite AG Action. That notice was due within 24 hours of execution and we have not seen it. Assuming it was served on time, ten business days from August 26, allowing for Labor Day, is Thursday, September 10. Missing it forfeits that jurisdiction's portion of the Cost Fund Payment and both installment streams (Section I.DDD). It reaches only jurisdictions carrying a pending Action, and Section I.ZZ enumerates 15 cases in 13 jurisdictions, not 51.
    • Dec. 28, 2026 and Mar. 1, 2027 (Scheduled, and Now Datable). Four months after the Effective Date, Section II.B.5.a's productive pauses and its notice on any 15-minute continuous session must run by default on teen accounts, and Section II.C.1's Non-Personalized Feed option must be selectable as a default home feed and "Reasonably Accessible," defined at Section I.VV as "viewable within three user gestures ... easy to notice, viewable without scrolling." Both land on Sunday, Dec. 27, so Section X.W moves performance to Monday, Dec. 28. Six months after the Effective Date, the Compliance Date at Section I.R binds Sections II and III generally, on Saturday, Feb. 27, performed Monday, Mar. 1. The four-month items are the better instrument: binary, and checkable by anyone with a U.S. teen account.
    • Meta's U13 Duty Runs on a Switch the FTC Holds (Pending). Section II.A.6.b.iii makes Meta's obligation to develop and use its under-13 age model "contingent upon" a release the states grant at Section II.A.6.b.iv and on "the continued application" of the Federal Trade Commission's COPPA (Children's Online Privacy Protection Act) enforcement policy statement on age-verification technology. If that statement stops applying or is withdrawn, the obligation stops with it. The statement runs until the FTC finalizes rules on age verification, and no such rulemaking is on the commission's current agenda. A federal agency would switch off a state-court obligation without preempting anything, because the settlement wrote the switch in itself.
    • H.R. 7757 Goes Further and Still Cannot Release the $5 Billion (Pending in the Senate). The Kids Internet and Digital Safety Act carries the Kids Online Safety Act as a subtitle, not a rival, and its safeguard against design features that "encourage compulsive usage" must default to the most protective option for a known minor. That reaches further into the feed than the court or the settlement did. It still cannot move the money. Section I.DD keys Industry-Wide Adoption to a default Daily Limit and Night Access Mode, and the words "time limit," "daily limit," "night" and "curfew" appear nowhere in the bill.

    The court in Santa Fe said the rest of the work belonged to another branch, and named two. The legislature had already drafted it and was already stalled. The executive bought a version of it in 51 jurisdictions, not including New Mexico, and stopped at the same line the court did. Whether that reads as the system working or as the system being routed around is a judgment nobody has to make today. The next settlement a state signs with one of those three companies will make it for us.

    Sources10See all 16

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    Sources and Verification
    14 of the 16 sources cited here are primarythe executed agreement, the proposed and the entered consent judgments, the order vacating the trial, the New Mexico judgment, the House-passed bill and its roll call, the FTC’s age-verification policy statement, the settlement’s own illustrative exhibits, the 1998 tobacco agreement and the announcing parties’ own statements
    Primary sources14
    Government + Policy12
    Business + Markets1
    Technology + Engineering1
    Wire and analysis2
    Business + Markets2
    v1 · Reviewed by Josh Lynwood · August 26, 2026
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