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Material near-term costs (~$10B legal expense in Q3'26) and a funded framework (~$18B over 10 years) could pressure margins; however, potential long-term benefits if industry-wide adoption stabilizes regulatory expectations and brand safety.
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Meta and 52 state attorneys general announced a multistate teen-safety framework for Instagram and Facebook, introducing time limits, Night Mode, School Mode, prompts, and parental controls. The company urged TikTok and YouTube to join for industry-wide adoption. The deal includes an $18 billion fund over 10 years and an expected $10 billion Q3’26 legal expense, with independent oversight and a youth-wafety research foundation.
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