Meta and TikTok Face Highest Risk From Global Age Verification Rules, BMO Says

Social media platforms are confronting a growing regulatory threat from global age verification initiatives, with Meta Platforms (NASDAQ:META) and TikTok facing the highest risk, according to a new analysis from BMO Capital Markets.

Mounting Regulatory Pressure

Analysts at BMO said that age verification requirements are still in their early stages but are gaining momentum worldwide. The trend follows Australia's implementation of online age verification rules in December 2025, which has prompted several other countries to introduce similar laws restricting minors' access to online content.

Social media platforms are the primary target of these regulations, which typically focus on preventing users under 16 from accessing certain content or services. According to BMO's assessment, the risk levels for major internet companies are:

• Highest Risk: Meta, TikTok
• Moderate Risk: YouTube (NASDAQ:GOOGL), Roblox (NYSE:RBLX), Snap (NYSE:SNAP), Pinterest (NYSE:PINS), and Reddit (NYSE:RDDT)
• Low Risk: Netflix (NASDAQ:NFLX)

Meta's Legal Headwinds

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Meta's risk profile is heightened by a recent settlement with 52 state attorneys general regarding child safety. The agreement includes financial penalties of up to $18 billion and significant structural changes, such as imposing two-hour daily time limits for certain users.

BMO noted that these structural changes represent a "more severe penalty than the financial costs." The investment bank believes the settlement could encourage U.S. lawmakers to pursue further restrictions on social media, creating continued regulatory pressure for Meta and its peers.

Technology and Enforcement Challenges

While technology for age verification has improved, including photo ID checks and facial age estimation, BMO points out that users can still find ways to bypass these systems, complicating enforcement. The bank suggested that more secure methods like token-based and Zero Knowledge Proof tools could offer better solutions for data management and compliance.

BMO also identified AgeKey as a technology that could potentially emerge as an industry standard for verification, though the landscape for these tools continues to evolve.