The settlement strengthens Meta by allowing it to weaponize compliance. By making parts of the fine conditional on competitors like YouTube and TikTok adopting similar terms, Meta creates a regulatory barrier for rivals and positions itself as a leader on child safety.
Financial penalties are ineffective deterrents for mega-corporations like Meta. A $17 billion fine, when contextualized against its $1.4 trillion market cap, is not a punishment but a negligible cost of doing business—a 'green light' to continue harmful practices.
The famed Tobacco Master Settlement Agreement did not end the industry. Instead, it spurred consolidation and prompted companies to innovate into new, less-regulated products like e-cigarettes and pivot to less-regulated international markets, showing the limitations of such landmark settlements.
The key to regulating platforms is not just policing user content but holding companies liable for their algorithmic choices. Reforming Section 230 to distinguish between hosting speech (immune) and algorithmic amplification (liable) would treat platforms as media companies for their editorial decisions.