Meta’s decision to end its third-party fact-checking programme is raising questions about the future of misinformation management on platforms like Facebook and Instagram.
The move, announced by the company’s founder and chief executive Mark Zuckerberg on Tuesday, shifts responsibility for identifying and addressing false information from professional fact-checkers to a new crowdsourced system called Community Notes, sparking debate over that system's effectiveness.
Why is Meta ending fact-checking?
Meta says the move is aimed at promoting free expression and reducing accusations of bias in content moderation.
"The fact-checkers have just been too politically biased and have destroyed more trust than they've created, especially in the US," Mr Zuckerberg said. Notably, his announcement follows years of criticism directed at Meta for its failure to effectively address hate speech, disinformation, and other problematic content on Facebook and Instagram.
But while Meta claims the change will boost open dialogue and ensure impartiality in content moderation, some industry experts have questioned its ability to effectively combat misinformation. They warned that relying on user-driven moderation could allow misinformation to go unchecked.
Why have fact-checkers criticised Meta's decision?
Fact-checking company Full Fact, which has participated in Meta’s third-party fact-checking programme since January 2019, said the move was “disappointing and a backward step that risks a chilling effect around the world”. From safeguarding elections to protecting public health and dissipating potential unrest on the streets, fact-checkers are first responders in the information environment, Chris Morris, chief executive of Full Fact, said.
“We absolutely refute Meta's charge of bias – we are strictly impartial, fact-check claims from all political stripes with equal rigour and hold those in power to account through our commitment to truth,” Mr Morris said. While working with Meta, Full Fact has checked images, videos and articles on Meta platforms and received income depending on the amount of fact-checking. It discloses all funding it receives exceeding £5,000 ($6,177) and claims it is editorially independent with no interference from funders.
How will the Community Notes system work?
The new community notes system relies on user-driven contributions to address misinformation. It allows platform users to add context or corrections to potentially misleading posts. However, for a note to appear publicly, contributors with diverse viewpoints must agree on its accuracy.
This approach ensures that the added information represents a consensus and avoids bias towards one-sided perspectives, Meta said. The Elon Musk-owned X, previously called Twitter, launched its Community Notes feature, originally called Birdwatch, in January 2021 for content moderation.
What does the change mean for Meta?
The move could support the California-based company's efforts to move away from allegations of censorship while balancing free speech with accountability.
Taylor Barkley, director of public policy at the Washington-based Abundance Institute, said the change represents “solid moves” by Meta. “During our year of tracking AI-generated election material, it was clear that a Community Notes system worked well at moderating content … it won't be perfect, but adapting new systems to more speech is the right move," he said.
Community notes are more trusted by users than professional fact-checkers providing misinformation labels, said John Katsos, a professor at the American University of Sharjah. “Academic research has shown the trust persists regardless of the user’s political persuasion. User trust is the key currency for social media platforms, so this is a logical step by Meta, ” Mr Katsos told The National.
“One potential problem is that stories from volatile regions are likely to get community notes put on them that are disproportionately from people with no real local knowledge of the setting, giving more control over the narrative to a much smaller number of users.”
However, some industry experts argued that by moving the responsibility for accuracy to its users, Meta has raised concerns about the system's effectiveness, speed and ability to tackle harmful content. Without professional oversight, the company is relying on crowd consensus to combat misinformation, a strategy that may prove inadequate against the rapid spread of fake stories and propaganda.
Fact-checking: vital yet vulnerable
Fact-checking, when done well, is a professional activity with standards, accountability and set procedures, but it has been too dependent on big-tech funding, experts say. “This vulnerability is exposed with Meta’s irresponsible shutdown of its fact-checking support programmes,” said Claes de Vreese, professor of artificial intelligence and society at the University of Amsterdam.
“Fact-checking is an important part of the information ecosystem. Removing it from the Meta universe is a step in the wrong direction and does not contribute to being compliant with EU regulations.”
This decision could also spark reactions from other regions, such as Europe. “Misinformation doesn’t respect borders, so European fact-checkers will be closely examining this development to understand what it means for our shared information environment,” Mr Morris said. Mr Vreese stressed that Community Notes possesses distinct qualities, but lacks the core features that make fact-checking effective and reliable.
Why is Meta moving its content analysis team to Texas?
Meta has also announced plans to relocate its content-review teams from California to Texas, a move it claimed will bring more diverse perspectives to its moderation policies. However, the company did not disclose the number of employees it will move to Texas. Meta’s relationship with Texas has been strained – it was forced to pay a $1.4 billion fine last July to settle a lawsuit over the collection of users' biometric data in the state.
Meta will not be the first such company to move to Texas. In July, Mr Musk announced plans to relocate X's headquarters from San Francisco to Texas. In December 2020, Oracle also announced the relocation of its headquarters from Redwood City, California, to Austin, Texas.
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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