Why Facebook is Holding Off on Kids' Instagram

File photo shows the Instagram app icon on the screen of a mobile device in New York. (AP Photo/Jenny Kane, File)
File photo shows the Instagram app icon on the screen of a mobile device in New York. (AP Photo/Jenny Kane, File)
TT

Why Facebook is Holding Off on Kids' Instagram

File photo shows the Instagram app icon on the screen of a mobile device in New York. (AP Photo/Jenny Kane, File)
File photo shows the Instagram app icon on the screen of a mobile device in New York. (AP Photo/Jenny Kane, File)

Bowing — perhaps only for a moment — to pressure from lawmakers, critics, the media and child development experts, Facebook said Monday it will “pause” its work on a kids' version of its photo and video-oriented Instagram app.

But what’s not yet clear is just how seriously Facebook is taking the concerns of experts and parents. Its decision to merely pause the project suggests it still plans to expose a much younger audience to Instagram, its well-documented harms and possibly the user profiling that feeds Facebook’s targeted ad machine. That ad machine, of course, has made the company one of the most profitable on the planet.

WHY IS FACEBOOK DOING THIS NOW?

The company's move follows an explosive mid-September report by The Wall Street Journal that found Facebook knew from its own research that Instagram was harming some teems, especially girls, leading to mental health and body image problems and in some cases eating disorders and suicidal thoughts.

In public, however, Facebook has consistently played down the app’s negative side and until now has barreled ahead with the kids’ version despite alarms from experts, lawmakers and its own research. It has also relentlessly criticized the Journal article as cherry-picking from Facebook's research, though it did not dispute the facts. That story, however, was based on internal research leaked by a whistleblower at the company.

It's likely not a coincidence that on Thursday, a panel of the Senate Commerce Committee will hold a hearing examining the “toxic effects” of Facebook and Instagram on young people. It's the latest of several hearings to look at whether Big Tech companies are hiding what they know about the harms their products cause.

SO IS INSTA FOR KIDS CANCELED?

Facebook has very specifically not said that it will abandon the project. Instead, Adam Mosseri, the head of Instagram, said in a blog post Monday that the company will use its pause time “to work with parents, experts and policymakers to demonstrate the value and need for this product."

Translation: Expect Facebook to sharpen its message on the “benefits” of Instagram for Kids in hopes that the furor will die down.

Consider that Facebook had already said it was working with parents, experts and policymakers back in July when it introduced safety measures for teens on its main Instagram platform. In fact, the company has been “working with” experts and other advisors for another product aimed at children — its Messenger Kids app that launched in late 2017.

“Critics of Instagram Kids' will see this as an acknowledgement that the project is a bad idea," Mosseri wrote. “That’s not the case.”

WHO ARE THE EXPERTS WORKING WITH FACEBOOK?

Four years ago, Facebook said it gathered a group of experts in the fields of online safety, child development and children’s media to "share their expertise, research and guidance." The group it calls Youth Advisors include some well-known and some lesser-known nonprofit groups, including the Family Online Safety Institute, Digital Wellness Lab, MediaSmarts, Project Rockit and the Cyberbullying Research Center.

All of these groups receive some form of funding from Facebook, according to their websites. Meanwhile, some of the best-known children's online advocacy groups — and Facebook's biggest critics on this matter — such as Common Sense Media and Fairplay (formerly known as the Campaign for Commercial-Free Childhood) are notably absent.

Critics acknowledge that many of the cooperative experts mean well, but say their influence has been negligible. "Facebook has shown time and time again that it is incapable of governing or advising itself with any integrity," said Kyle Taylor, program director for the Real Facebook Oversight Board, a group critical of the social network.

“Facebook’s funding of research and civil society is hugely problematic, and prevents the kind of direct, open process that is required for any real change to occur."

When Facebook seeks feedback for its projects, Taylor added, “the decks are always stacked with experts who have a financial interest or who will never criticize Facebook’s core issues - their algorithm and their profit margin."

COULD FACEBOOK STILL PULL THE PLUG?

Fairplay executive director Josh Golin argues that Instagram for Kids may have already sunk beneath the waves. The “pause,"' he said, is a good way for Facebook to save face and hope that after a while people will forget about it.

He acknowledges that his group and other advocates failed to pressure Facebook into canceling its kids' messaging product, but says Instagram for Kids is different.

“Instagram is a much much worse platform for children" than Messenger, he said, noting Facebook's own internal research and a “wealth of evidence" supporting this point. The climate has also changed since 2017 and 2018, when the “techlash" against Big Tech's harmful effects on society was just emerging. Now, it's in full force and much more organized. Finally, there's tech product inertia.

“With Messenger Kids, the backlash didn’t start until it had already came out," he said. “It is much easier for a corporation to walk back a product that doesn’t yet exist than to take a product off the market,"

WHAT ABOUT OTHER PLATFORMS?

Facebook, of course, is not the only tech platform whose products have caused ripples of concern about the well-being of children. And creating kids' versions in the face of these concerns is a popular response. After getting in trouble with US regulators for violating children’s privacy rules, for instance, TikTok created a “limited, separate app experience” for users who are under 13. They can’t share videos, comment on other people’s videos or message people. But as with any other app, if kids enter a fake birthdate when they register with the app, they can get around that provision.

YouTube has a kids version too. Lawmakers earlier this year called it a “wasteland of vapid consumerist content" and launched an investigation that's still ongoing



Siemens Energy Trebles Profit as AI Boosts Power Demand

FILED - 05 August 2025, Berlin: The "Siemens Energy" logo can be seen in the entrance area of the company. Photo: Britta Pedersen/dpa
FILED - 05 August 2025, Berlin: The "Siemens Energy" logo can be seen in the entrance area of the company. Photo: Britta Pedersen/dpa
TT

Siemens Energy Trebles Profit as AI Boosts Power Demand

FILED - 05 August 2025, Berlin: The "Siemens Energy" logo can be seen in the entrance area of the company. Photo: Britta Pedersen/dpa
FILED - 05 August 2025, Berlin: The "Siemens Energy" logo can be seen in the entrance area of the company. Photo: Britta Pedersen/dpa

German turbine maker Siemens Energy said Wednesday that its quarterly profits had almost tripled as the firm gains from surging demand for electricity driven by the artificial intelligence boom.

The company's gas turbines are used to generate electricity for data centers that provide computing power for AI, and have been in hot demand as US tech giants like OpenAI and Meta rapidly build more of the sites.

Net profit in the group's fiscal first quarter, to end-December, climbed to 746 million euros ($889 million) from 252 million euros a year earlier.

Orders -- an indicator of future sales -- increased by a third to 17.6 billion euros.

The company's shares rose over five percent in Frankfurt trading, putting the stock up about a quarter since the start of the year and making it the best performer to date in Germany's blue-chip DAX index.

"Siemens Energy ticked all of the major boxes that investors were looking for with these results," Morgan Stanley analysts wrote in a note, adding that the company's gas turbine orders were "exceptionally strong".

US data center electricity consumption is projected to more than triple by 2035, according to the International Energy Agency, and already accounts for six to eight percent of US electricity use.

Asked about rising orders on an earnings call, Siemens Energy CEO Christian Bruch said he thought the first-quarter figures were not "particularly strong" and that further growth could be expected.

"Demand for gas turbines is extremely high," he said. "We're talking about 2029 and 2030 for delivery dates."

Siemens Energy, spun out of the broader Siemens group in 2020, said last week that it would spend $1 billion expanding its US operations, including a new equipment plant in Mississippi as part of wider plans that would create 1,500 jobs.

Its shares have increased over tenfold since 2023, when the German government had to provide the firm with credit guarantees after quality problems at its wind-turbine unit.


Instagram Boss to Testify at Social Media Addiction Trial 

The Instagram app icon is seen on a smartphone in this illustration taken October 27, 2025. (Reuters)
The Instagram app icon is seen on a smartphone in this illustration taken October 27, 2025. (Reuters)
TT

Instagram Boss to Testify at Social Media Addiction Trial 

The Instagram app icon is seen on a smartphone in this illustration taken October 27, 2025. (Reuters)
The Instagram app icon is seen on a smartphone in this illustration taken October 27, 2025. (Reuters)

Instagram chief Adam Mosseri is to be called to testify Wednesday in a Los Angeles courtroom by lawyers out to prove social media is dangerously addictive by design to young, vulnerable minds.

YouTube and Meta -- the parent company of Instagram and Facebook -- are defendants in a blockbuster trial that could set a legal precedent regarding whether social media giants deliberately designed their platforms to be addictive to children.

Rival lawyers made opening remarks to jurors this week, with an attorney for YouTube insisting that the Google-owned video platform was neither intentionally addictive nor technically social media.

"It's not social media addiction when it's not social media and it's not addiction," YouTube lawyer Luis Li told the 12 jurors during his opening remarks.

The civil trial in California state court centers on allegations that a 20-year-old woman, identified as Kaley G.M., suffered severe mental harm after becoming addicted to social media as a child.

She started using YouTube at six and joined Instagram at 11, before moving on to Snapchat and TikTok two or three years later.

The plaintiff "is not addicted to YouTube. You can listen to her own words -- she said so, her doctor said so, her father said so," Li said, citing evidence he said would be detailed at trial.

Li's opening arguments followed remarks on Monday from lawyers for the plaintiffs and co-defendant Meta.

On Monday, the plaintiffs' attorney Mark Lanier told the jury YouTube and Meta both engineer addiction in young people's brains to gain users and profits.

"This case is about two of the richest corporations in history who have engineered addiction in children's brains," Lanier said.

"They don't only build apps; they build traps."

But Li told the six men and six women on the jury that he did not recognize the description of YouTube put forth by the other side and tried to draw a clear line between YouTube's widely popular video app and social media platforms like Instagram or TikTok.

YouTube is selling "the ability to watch something essentially for free on your computer, on your phone, on your iPad," Li insisted, comparing the service to Netflix or traditional TV.

Li said it was the quality of content that kept users coming back, citing internal company emails that he said showed executives rejecting a pursuit of internet virality in favor of educational and more socially useful content.

- 'Gateway drug' -

Stanford University School of Medicine professor Anna Lembke, the first witness called by the plaintiffs, testified that she views social media, broadly speaking, as a drug.

The part of the brain that acts as a brake when it comes to having another hit is not typically developed before a person is 25 years old, Lembke, the author of the book "Dopamine Nation," told jurors.

"Which is why teenagers will often take risks that they shouldn't and not appreciate future consequences," Lembke testified.

"And typically, the gateway drug is the most easily accessible drug," she said, describing Kaley's first use of YouTube at the age of six.

The case is being treated as a bellwether proceeding whose outcome could set the tone for a wave of similar litigation across the United States.

Social media firms face hundreds of lawsuits accusing them of leading young users to become addicted to content and suffer from depression, eating disorders, psychiatric hospitalization, and even suicide.

Lawyers for the plaintiffs are borrowing strategies used in the 1990s and 2000s against the tobacco industry, which faced a similar onslaught of lawsuits arguing that companies knowingly sold a harmful product.


OpenAI Starts Testing Ads in ChatGPT

The OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
The OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
TT

OpenAI Starts Testing Ads in ChatGPT

The OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
The OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

OpenAI has begun placing ads in the basic versions of its ChatGPT chatbot, a bet that users will not mind the interruptions as the company seeks revenue as its costs soar.

"The test will be for logged-in adult users on the Free and Go subscription tiers" in the United States, OpenAI said Monday. The Go subscription costs $8 in the United States.

Only a small percentage of its nearly one billion users pay for its premium subscription services, which will remain ad-free.

"Ads do not influence the answers ChatGPT gives you, and we keep your conversations with ChatGPT private from advertisers," the company said.

Since ChatGPT's launch in 2022, OpenAI's valuation has soared to $500 billion in funding rounds -- higher than any other private company. Some analysts expect it could go public with a trillion-dollar valuation.

But the ChatGPT maker burns through cash at a furious rate, mostly on the powerful computing required to deliver its services.

Its chief executive Sam Altman had long expressed his dislike for advertising, citing concerns that it could create distrust about ChatGPT's content.

His about-face garnered a jab from its rival Anthropic over the weekend, which made its advertising debut at the Super Bowl championship with commercials saying its Claude chatbot would stay ad-free.