State attorneys general probing Instagram’s effects on kids

Meta spokesperson Liza Crenshaw called the accusations “false” and said they demonstrate “a deep misunderstanding of the facts.” (File/AFP)
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Updated 19 November 2021
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State attorneys general probing Instagram’s effects on kids

  • US state attorneys say Facebook ignored internal research about the physical and mental health dangers of Instagram

LONDON: A group of state attorneys general are investigating the photo-sharing platform Instagram and its effects on children and young adults, saying its parent company Facebook — now called Meta Platforms — ignored internal research about the physical and mental health dangers it posed to young people.
The investigation is led by a bipartisan coalition of attorneys general from California, Florida, Kentucky, Massachusetts, Nebraska, New Jersey, Tennessee, and Vermont. It follows damning newspaper reports, first by The Wall Street Journal, based on the company’s own research that found that the company knew about the harms Instagram can cause teenagers — especially teen girls — when it comes to mental health and body image issues.
Since those first reports, a consortium of news organizations, including The Associated Press, have published their own findings based on leaked documents from whistleblower Frances Haugen, who has testified before Congress and a British parliamentary committee about what she found.
“For too long, Meta has ignored the havoc that Instagram is wreaking on the mental health and well-being of our children and teens,” said California Attorney General Rob Bonta. “Enough is enough. We’ve undertaken this nationwide investigation to get answers about Meta’s efforts to promote the use of this social media platform to young Californians – and to determine if, in doing so, Meta violated the law.”
The investigation targets, among other things, the techniques Meta uses to keep young people on its platforms — and the harms that extended time spent on Instagram can cause.
In a statement, Meta spokesperson Liza Crenshaw called the accusations “false” and said they demonstrate “a deep misunderstanding of the facts.”
“While challenges in protecting young people online impact the entire industry, we’ve led the industry in combating bullying and supporting people struggling with suicidal thoughts, self-injury, and eating disorders,” Crenshaw said in the statement.
The state investigations follow a Monday announcement that Ohio’s largest public employee pension fund had sued Meta, alleging that it broke federal securities law by purposely misleading the public about the negative effects of its social platforms and the algorithms that run them.
The lawsuit by the Ohio Public Employees Retirement System claims that Facebook buried inconvenient findings about how the company has managed those algorithms as well as the steps it said it was taking to protect the public.


Meta to charge Arab advertisers extra fee for reaching European audiences

Updated 22 sec ago
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Meta to charge Arab advertisers extra fee for reaching European audiences

  • US tech giant told advertisers it will add fees ranging from 2 to 5 percent on image and video ads delivered on its platforms to offset digital service taxes
  • Charges are determined by where the audience is located, not where the advertiser is based

LONDON: Meta will from July 1 impose location-based surcharges on advertisers targeting audiences in six European countries, a move that will directly affect Arab businesses that run campaigns across the continent.

The US tech giant announced it will add fees ranging from 2 to 5 percent on image and video ads delivered on its platforms, including Facebook, Instagram and WhatsApp, to offset digital service taxes imposed by individual governments.

Crucially, the charges are determined by where the audience is located, not where the advertiser is based.

That means Saudi, Emirati, Egyptian or other Arab companies paying to reach consumers in the UK, France or Italy will face the additional costs regardless of their own country’s tax arrangements with Meta.

Fees will apply at 2 percent for ads reaching UK audiences, 3 percent for France, Italy and Spain, and 5 percent for Austria and Turkiye.

“If you deliver $100 in ads to Italy, where there is a 3% location fee, you will be charged $100 (ad delivery), plus $3 (location fee), for $103 total,” the company wrote in an email to an advertiser initially reported by Bloomberg. “Note that any applicable VAT will be calculated on top of the total amount.”

The taxes have been introduced at different points, starting with France in 2019, though not the EU as a bloc.

Many tech companies report substantial sales in Europe and millions of users but pay minimal tax on profits. The goal is to claw back locally derived economic value, Bloomberg reported.

The move follows similar decisions by Google and Amazon, which have also begun passing European digital tax costs on to advertisers.

For Arab brands with growing European footprints, particularly in fashion, travel, hospitality and media, the new fees add another layer of cost to campaigns already subject to currency and targeting complexities.

Digital services taxes, levied as a percentage of revenues earned by major tech platforms in individual countries, have drawn criticism from Washington, which argues they unfairly target US companies.

Meta has been reached for comments.