Investing.com -- BMO Capital Markets said social media platforms face mounting regulatory pressure from global age verification initiatives, with Meta Platforms (NASDAQ: META) and TikTok identified as facing the highest risk among internet companies.

The bank said age verification requirements remain in early stages following Australia's implementation of online age verification rules in December 2025. Multiple countries have since introduced similar laws restricting minors' access to online content.

Meta reached a settlement with 52 state attorneys general over child safety concerns. The company agreed to pay up to $18 billion in financial penalties and implement structural changes including two-hour daily time limits for users.

BMO said the structural changes represent a more severe penalty than the financial costs. The settlement may encourage U.S. lawmakers to pursue additional restrictions on social media use by minors, creating continued regulatory pressure for Meta and other platforms.

Social media platforms face the greatest risk from age verification initiatives because regulations typically focus on removing access for users under 16 years old, according to BMO. YouTube, owned by Alphabet (NASDAQ: GOOGL), along with Roblox (NYSE: RBLX), Snap (NYSE: SNAP), Pinterest (NYSE: PINS) and Reddit (NYSE: RDDT) face moderate risk. Netflix (NASDAQ: NFLX) faces low risk from age verification requirements.

Technology tools for age verification have improved, including photo identification and facial age estimation through selfies. Users can still bypass these systems, making enforcement difficult, BMO said.

The bank said token-based and Zero Knowledge Proof tools provide more secure age verification for data management and compliance. AgeKey may become an industry standard for verification technology.