海角大神

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Now, even some tech firms acknowledge tech's downside

The request by influential shareholders for Apple to help curb excessive digital media use among teens and Mark Zuckerberg's decision to revamp Facebook's newsfeed comes amid a growing discontent over the ways that technology platforms foster habit-forming behavior. Some companies, including Facebook, appear to be listening.

By Laurent Belsie, Staff writer Eoin O'Carroll , Staff writer

For months, the whispers had been growing louder in tech circles: Influential tech companies are using techniques to grab so much of people鈥檚 attention that it bordered on fostering addiction.

The charges came from high-profile former employees and venture capitalists, who said the companies were doing it on purpose.

This week, those concerns spread to the investment world and ensnared another high-tech titan, as a prominent hedge fund and a major pension fund joined in an open call for Apple to offer parents tools to limit their children鈥檚 use of iPhones and other devices.

All this represents a marked shift among powerbrokers for the high-tech industry, where large firms like Apple and Google have generally been held in high regard among investors, even those concerned with corporations鈥 social impact. The reason may be, in part, that the ubiquity of apps and smartphones is only now 鈥 and slowly 鈥 being met with a focus on negative side-effects.

The rising discussion also lays bare a fundamental tension in the tech industry: Profits are often linked to keeping consumers glued to their screens, despite evidence that the devices come with risks as well as benefits. The recent outcry may be an early sign of pressure on tech firms to align their business models closer to what鈥檚 valuable to consumers 鈥 shifts that some companies, including the pioneering social-media giant Facebook, already appear to be making.

鈥淭his makes sense for both kids and for Apple shareholders,鈥 says Charles Penner, a partner at the activist hedge fund Jana Partners, which wrote the聽open letter聽Saturday along with the California State Teachers鈥 Retirement System (CalSTRS). 鈥淎pple can enhance its brand by proving to parents that it takes kids鈥 safety seriously.鈥

Challenging the attention economy

The safety concerns are many, of course, including inappropriate content and online scams or predators, but one of the most basic is the sheer amount of an individual鈥檚 time the devices can absorb.

鈥淲hat the research suggests is that being on your phone up to about two hours a day is fine for happiness and mental health and well-being,鈥 says San Diego State University psychologist Jean Twenge, author of 鈥渋Gen:聽Why Today鈥檚 Super-Connected Kids Are Growing Up Less Rebellious, More Tolerant, Less Happy 鈥 and Completely Unprepared for Adulthood鈥 and a co-author of the shareholder letter.

But when that daily screen time is exceeded,聽risk factors for suicide rise sharply, according to her research. The average American teenager spends more than 4 and a half hours a day using a smartphone, not counting texting and talking.

And it鈥檚 not just kids who are getting hooked. In 2017 the marketing firm Flurry found that the time the average American spent each day on a mobile device has聽crossed the five-hour mark. Between 2015 and 2017, adult media consumption jumped 97 minutes per day, virtually all of it due to an increase in smartphone use, according to Nielsen, a global measurement and data analytics company based in New York.

鈥淭here鈥檚 a ton of great stuff happening on these platforms,鈥 Scott Galloway, a vocal critic of the big companies鈥 business practices and New York University marketing professor, told a聽New York conference聽in November. 鈥淏ut until about three months ago, that is literally all we talked about. We have to have an adult conversation about both the upsides and the downsides. And I feel for the first time, we鈥檙e having an adult conversation.鈥

Some of the sharpest criticism has come from former executives of and investors in the firms themselves.

In November, Sean Parker, the creator of Napster and the first president of Facebook,聽told Axios聽that the social network was deliberately designed with the aim of 鈥渆xploiting a vulnerability in human psychology鈥 to 聽鈥漜onsume as much of your time and conscious attention as possible.鈥

Mr. Parker鈥檚 remarks were echoed by Facebook-engineer-turned-venture-capitalist Chamath Palihapitiya, who in an聽expletive-laden talk聽at Stanford Graduate School of Business in November expressed 聽鈥漷remendous guilt鈥 at helping to create 鈥渟hort-term, dopamine-driven feedback loops鈥 that are 鈥渄estroying how society works.鈥 Roger McNamee, an investor in Facebook and Google wrote in USA Today in August that he is 鈥渢errified鈥 by the damage done by these companies, which he says borrow techniques from the gambling industry.

Even the creator of Facebook鈥檚 鈥渓ike鈥 button 鈥 Silicon Valley programmer Justin Rosenstein 鈥 now rues the feature. He uses an iPhone that has been disabled from downloading any apps.

Time for a new business model?

Getting these companies to change is hard, when their entire business model depends on getting millions of users to stay on their platforms for as long as possible. That is why Jana Partners and CalSTRS, who between them control about $2 billion in Apple stock, have focused on Apple, whose iPhone is a huge conduit to the potentially addictive apps.

鈥淎pple鈥檚 business model is not dependent on users spending more time on the device,鈥 says Dr. Twenge. 鈥淚 do think this is an opportunity for Apple to lead the way, and it should be a win-win for them because parents might be more willing to buy phones for their teens and their kids if they鈥檙e safer.鈥

In a statement responding to the investors鈥 letter, Apple pointed out that its devices already have parental controls. The company also plans 鈥渆ven more robust鈥 controls, according to its statement. 鈥淎pple has always looked out for kids, and we work hard to create powerful products that inspire, entertain and educate children while also helping parents protect them online.鈥

In a blog post Thursday, Facebook CEO Mark Zuckerberg announced a major change to the company's news feed. In light of psychological research, some carried out by Facebook, that shows that users tend to be happier when connecting with friends than passively consuming posts, Mr. Zuckerberg says that the news feed will聽place a bigger emphasis on posts from friends and family, while downplaying content from news media and other businesses.

The move could hurt profits, he wrote.聽鈥淏y making these changes, I expect the time people spend on Facebook and some measures of engagement will go down. But I also expect the time you do spend on Facebook will be more valuable.鈥澛

The pressure on the tech industry comes as watchdog groups have already been trying to help consumers find healthier behaviors. One movement called Time Well Spent offers聽a range of consumer tips, such as minimizing the number of automatic notifications.

It鈥檚 not clear if the criticism of tech-firm 鈥渁ttention mining鈥 has yet made a dent in the industry鈥檚 reputation among investors, even socially responsible ones.

鈥淚 don鈥檛 see it right now as an issue in the investment world,鈥 says Shawn Lesser, co-founder聽of Big Path Capital, an impact-investing firm. Technologies 鈥渁re tools.... It depends on how you use them.鈥