We present a cascading failure model of two interdependent networks in which functional nodes belong to components of size greater than or equal to $s$. We find theoretically and via simulation that in complex networks with random dependency links the transition is first-order for $sgeq 3$ and second-order for $s=2$. We find for two square lattices with a distance constraint $r$ in the dependency links that increasing $r$ moves the system from a regime without a phase transition to one with a second-order transition. As $r$ continues to increase the system collapses in a first-order transition. Each regime is associated with a different structure of domain formation of functional nodes.
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