In today’s Finshots, we tell you why Meta is discontinuing its fact-checking program on Facebook, Instagram and Threads.

But before we dive into the story, did you know that schools in India are legally required to operate as non-profits? Yet, school fees often feel sky-high. So, what’s driving these costs and where’s the money going?

We break it all down in our latest video - you can check it out here.

The Story

The "Nosedive" episode from the series Black Mirror paints a chilling picture of a world where every post, like, and interaction shapes the user’s social credit score. And this score is something that will dictate their jobs, housing, and even flights. One bad post, one viral misstep, and the user’s life spirals out of control. While it’s fictional, it highlights a harsh truth—we live in an era where a single piece of misinformation can wreak havoc, twisting public opinion and societal narratives in minutes.

The reason it’s relevant right now is because the dynamics of managing information are about to change dramatically.

You see, Meta, the parent company of Facebook, Instagram, and Threads, is ditching its third-party fact-checking program in the US. Instead, it’s introducing ‘community-driven moderation’. Sounds fancy, but it simply means that instead of Meta verifying social media posts, users can flag any post as true or false and add context to them. So imagine replacing professional referees with a stadium of fans, each shouting their version of the rules. That’s the essence of Meta’s new strategy.

And why this shift, you ask? Well, as per Meta co-founder and CEO Mark Zuckerberg, it’s about restoring free speech and reducing allegations of bias against centralized fact-checking systems in the US.

Now, that does sound democratic as everyone gets a say. But crowds can also be unpredictable, right? Because while they might get some things right, they can also get things very, very wrong.

And that's why this change has sparked a heated debate.

You see, Meta isn’t just any tech company. It’s a digital behemoth serving over 3 billion users daily - or 40% of the Earth’s population! - who visit its platforms for news, entertainment, and connection. 

And while Zuckerberg is betting on collective intelligence to outperform top-down control, the risks are glaring.

For starters, what if a group of people with an agenda decides to hijack the system? They could flood posts with false “facts” and sway public opinion. Then there’s the problem of accountability. If a false claim spreads and causes harm, who takes the blame? - The platform? The community? No one? And you have to account that misinformation often spreads faster than corrections can catch up. So by the time a note is added, the damage might already be done. Lastly, let’s face it, most of us aren’t experts or equipped to fact-check complex topics like climate change or vaccine science, right?

So yeah, it’s all too messed up.

After all, we have something to learn from X’s Community Notes, which is already out and similar to what Meta is planning to roll out. When the platform announced it, it got mixed reactions. Sometimes it worked brilliantly. People flagged false claims, and post readers got the real context. But other times, it fell flat. Notes were confusing or missed the bigger picture. 

So replicating a model like this across Meta’s sprawling platforms, with their diverse user base and heavy reliance on advertising revenue, could be a different beast altogether.

Which brings us to Meta’s cash cow - advertising or ad revenues. Ads make up nearly 98% of its revenues. That’s billions of dollars riding on brands feeling confident about where their ads appear on Meta. If community-driven moderation leads to a rise in harmful or misleading content, advertisers might get spooked and might pull back. That could disrupt Meta’s revenues and shake its business model.

So why is Meta risking it, you ask? Well, many say that politics might be at play. Meta’s had a rocky history with US leaders, especially after banning Donald Trump from its platforms after the Capitol riots. But with Trump’s return in the administration in 2024 and his push for “unfiltered” social media, maybe Meta’s trying to play nice.

But this isn’t just about the US.

You see, India is one of Meta’s biggest markets and it could also feel tremors. How? The giant has a strong fact-checking network with 12 certified Indian partners covering 15 languages. These fact-checkers do a crucial job. When a post goes viral or raises red flags, they dive in and cross check the facts against reliable sources and evidence.

But the problem is that these fact-checking groups rely on Meta for funding. And if this funding dries up, some organizations could shut their shops for good. 

Plus, it’s not just about money. These groups depend on Meta’s platforms to get their work seen. Facebook and Instagram drive massive traffic to their websites, helping their fact-checks reach millions. If Meta extends this policy to India and these checks vanish from the platforms, it’ll be a blow to reliable information. Today, Meta works with big names in India like PTI, India Today Fact Check, The Quint, along with smaller groups. And together, they’ve built a solid defense against misinformation in one of the world’s most linguistically and culturally diverse countries. With Meta’s rethink, this ecosystem could take a massive hit.

So, is Meta’s move a bold experiment in democratization or a risky gamble with truth? It might be too early to say without enough data and facts. But what’s given is that advertisers will probably keep spending on ads on Meta’s platforms as long as Meta delivers results and returns on their investments. If so, Meta’s business might also sail smoothly and Indian fact-checkers will need to rethink their business strategies.

For the rest of us, the bigger question looming would be—How do we ensure accurate information? Perhaps the answer lies in a mix of community input and expert oversight. Or maybe it’s time for decentralized systems guaranteeing transparency. You tell us.

For now, what we do know is that Meta’s move is reshaping the narrative for tomorrow.

Until then...

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