Meta has agreed to pay up to $18 billion in the largest settlement ever related to children's online safety. The deal, which isn't an admission of guilt, sees the social media giant facing restrictions on how it targets and interacts with young users.

The agreement comes as Meta seeks to set a new standard for teen protection, introducing features like default two-hour usage limits and 'Night Mode' between midnight and 6 AM. These measures are aimed at reducing screen time but also respecting the need for teens to communicate privately.

However, for the deal to fully take effect, YouTube and TikTok must implement similar measures. Meta's Chief Legal Officer C.J. Mahoney is calling on competitors to join in, suggesting that an industry-wide solution could be more effective than piecemeal policies.

The settlement will be distributed over a decade but comes with a catch: 30% of the payout depends on YouTube and TikTok adopting similar restrictions. This means if the tech giants don't comply, Meta may not see the full benefit of its hard-fought compromise.

Meta's stock has risen on news of the settlement, indicating that investors are optimistic about the company's future in a more regulated digital space. But for teens and their parents, it remains to be seen if these new rules will make a meaningful difference.