Social media business model is underlying problem for disinformation – experts

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FIGHTING DISINFORMATION. The first session of the 2019 International Grand Committee on Disinformation and 'Fake News' in Dublin, Ireland on November 7, 2019. Screenshot from livestream

MANILA, Philippines – Experts on Thursday, November 7, cited the existing business model of social media – the multibillion dollar real-time bidding advertising industry – as an underlying problem that makes the algorithmic amplification of messages like hate speech and disinformation a lucrative proposition and a destabilizing force in a democratic society.

At the International Grand Committee on Disinformation and "Fake News" in Dublin, Ireland, these experts were called on to describe what the evidence on online harms, hate speech and electoral interference tell about the problem of disinformation and fake news, and were asked to explain what they thought most urgently needed to be addressed as a whole.

Threats to democracy

Dr Karlin Lillington, a technology journalist and columnist for the Irish Times, said the business model of social media and search platforms, in which they extract data from users while encouraging users to "addictively engage with and return to the platforms is the foundation of serious problems" that need to be discussed.

"Too often, the focus of policy discussions is on the risks posed by social media in established democracies, but the most vulnerable victims are ironically those who fight most courageously on behalf of democracy – human rights defenders," she added.

Human rights defenders, she explained, do not want to leave social media because it also provides them tools with which to help disseminate information and allow them some anonymity, such as through encrypted messaging, even if the problems of social media lend to their own harassment.

Facebook, Lillington said, has also been implicated in reports of "ignoring anti-democratic campaigns on the site and inexplicably viewing despots as opportunities to extend platform reach."

She also mentioned how Facebook aided the Philippines' Duterte campaign in learning more about social media use – even though, the expert said, knowledge of the country's vigilante anti-drug squads was already known. (READ: Did Cambridge Analytica use Filipinos' Facebook data to help Duterte win?)

How real-time bidding works

Calling it a "cancer eating at the heart of legitimate media," Dr Johnny Ryan, chief policy and industry relations officer at private web browser company Brave, explained how the real-time bidding business model of social media works.

"The problem of disinformation arises because of what happens every time you load a webpage. As a page loads, a broadcast with information about you is sent to tens or hundreds of companies every single time. The intention is that this allows technology companies who represent advertisers to compete for the opportunity to show you an ad."

Ryan explained that while this seems innocuous, the snapshot of data may include inferences on things like your sexual orientation, your political views, your religion, health issues you may have, and "the precise thing you're watching or listening to or reading at that point in time and where you are." This snapshot lets your data be put into a virtual dossier or profile about you.

Worse still, real-time bidding allows criminals to operate fake profiles and bots to divert money – an estimated $5.8 billion to $42 billion – from publishers out of advertisers' wallets and into criminals' pockets.

Data as human right

Investor and author Roger McNamee called on personal data to be classified as a human right and not an asset.

Citing a number of tech companies' initiatives which not only exploit the weaknesses of democratic institutions but also accelerate the weakening of those institutions – such as Facebook's Libra cryptocurrency and Amazon's efforts in law enforcement – McNamee said platforms have "positioned themselves to replace democratic institutions."

"The success of internet platforms has produced harm to public health, democracy, privacy, and competition on a global basis, and the driver of that is the algorithmic amplification of hate speech, disinformation and conspiracy theories as well as microtargeting based on massive surveillance," McNamee said.

McNamee added internet companies' profits are inflated because they do not pay the cost of the harm they cause. (READ: Facebook hit by 'tsunami' of bogus political news – NGO)

Governments, he said, need new tools to constrain the business model of surveillance capitalism, hence the suggestion to have personal data classified as a human right.

Speaking about social media, he added, "We have to be prepared to shut them down for periods of time when they misbehave because they are clearly defying democratic governments around the world."

McNamee also testified in the May 2019 assembly of the committee, saying that governments should threaten to shut down social media platforms to create leverage.

Deterring interference campaigns

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