Facebook shares are poised to open a little higher Tuesday, as News Corp executive Chairman Rupert Murdoch calls for Facebook and other prominent tech firms to pay for trusted news, to help halt the spread of ‘fake news’ stories.
Facebook shares closed in positive territory at $185.37 in the US Monday. Pre-market activity currently places the Facebook stock price around 0.50% in the green, when the US market opens shortly.
Murdoch supports professional journalism
In a statement on the News Corp website, Murdoch shares his views on Facebook and Google’s current news algorithms. He states that while they may be profitable for the tech giants, they aren’t proving reliable for social media users.
Following admissions that mistakes have been made and a solution needs to be found, Murdoch said the current measures discussed and taken by Facebook and Google “are inadequate, commercially, socially and journalistically.”
“The time has come to consider a different route. If Facebook wants to recognize ‘trusted’ publishers then it should pay those publishers a carriage fee similar to the model adopted by cable companies,” Murdoch said as his solution to the problem.
“Carriage payments would have a minor impact on Facebook’s profits but a major impact on the prospects for publishers and journalists,” Murdoch added.
Facebook discusses fake news problem
Separately, Samidh Chakrabarti, a Facebook product manager attempted to answer a tough question on Facebook – “What Effect Does Social Media Have on Democracy?”
In an interview published on Facebook, Chakrabarti admits Facebook has made mistakes. But, he also stated that there is no easy solution to ensuring social media’s influence on politics and democracy is always a positive one.
“As unprecedented numbers of people channel their political energy through this medium, it’s [Facebook] being used in unforeseen ways with societal repercussions that were never anticipated,” Chakrabarti said.
“In 2016, we at Facebook were far too slow to recognize how bad actors were abusing our platform. We’re working diligently to neutralize these risks now,” he said. “We have a moral duty to understand how these technologies are being used and what can be done to make communities like Facebook as representative, civil and trustworthy as possible.”