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Meta Suspends Fact-Checking Program In The US

Meta Platforms has announced a major shift in its approach to content moderation in the United States, suspending its fact-checking program. The parent company of Facebook, Instagram, and Threads, which collectively boast over 3 billion users, will relax restrictions on controversial subjects such as immigration, sports, and gender identity. This move comes just as President-elect Donald Trump is poised to take office.

Key Changes

Rather than relying on an official fact-checking program to address questionable claims across its platforms, Meta plans to implement a community-based system similar to the one on Elon Musk’s X (formerly Twitter). This new approach, known as “community notes,” will enable users to provide context and flag misinformation, shifting responsibility from the company to the community. Additionally, Meta will no longer proactively monitor hate speech or other policy violations. Instead, posts will only be reviewed if flagged by users.

Meta will also relocate the teams responsible for content moderation from California, where most of the company’s US operations are based, to Texas and other locations in the country.

A Shift In Policy

This overhaul represents the most significant shift in Meta’s content moderation strategy, signaling a potential shift in its alignment with the incoming presidential administration. CEO Mark Zuckerberg seems to be signaling a return to a more lenient stance on freedom of expression.

In a video statement, Zuckerberg stated, “We’ve reached a point where there’s just too much wrongdoing and too much censorship. It’s time to get back to our roots around freedom of expression.”

A Strategic Move

Meta’s decision follows its recent hiring of conservative figures to its board, including Joel Kaplan, a former Republican Party political strategist, who was appointed head of global affairs. Dana White, the CEO of the UFC and a close ally of Trump, was also named to the board. Zuckerberg has publicly expressed regret over some of Meta’s previous content moderation decisions, especially in relation to COVID-19. Additionally, Meta made a notable donation of $1 million to Trump’s inauguration fund, diverging from its past practices.

A Backlash

The decision to end the fact-checking program, which began in 2016, was met with strong opposition from partner organizations. Angie Drobnick Holan, head of the International Fact-Checking Network, called it “a serious blow to the community,” emphasizing that fact-checkers did not censor posts but provided additional context and debunked false claims and conspiracies.

What’s Next?

Currently, Meta plans to implement these changes exclusively in the US market. It remains unclear whether similar changes will be made in the European Union, which has adopted stricter regulations through the Digital Services Act. This law, which came into force in 2023, mandates large online platforms like Facebook and X to address illegal content and potential public safety risks. X’s “Community Notes” feature is already under scrutiny by the European Commission, which launched an investigation in December 2023.

If Meta or any other company violates EU regulations, they could face fines of up to 6% of their global revenue.

MENA Tech Index Fell 4.6% In July, But Outperformed Global Tech

The MAGNiTT Tech Index fell 4.6% in July, marking its second consecutive monthly decline as technology stocks weakened across global markets. MGTI closed the month at 165.24, down 4.76% in 2026 and 24.88% from its January 2025 peak.

Despite the decline, the index remained 65.24% above its January 2023 inception level. Its lower correlation with global technology benchmarks also limited its exposure to the broader technology sell-off.

Saudi Technology Stocks Lead The Decline

Saudi technology companies accounted for much of July’s decline. Nice One fell 21.3%, Jahez dropped 17.2%, and Rasan declined 15.7%, while Talabat gave back part of its second-quarter recovery.

Only three of the index’s 15 constituents ended July higher. MGTI also underperformed regional equity markets, with Saudi Arabia falling 1.89% and Dubai declining 2.69% during the month.

MGTI Shows Lower Correlation With Global Tech

July marked a reversal in global technology stocks, with MSCI EM IT falling 12.81% and MSCI ACWI IT declining 5.64%. MGTI’s lower correlation with those benchmarks limited the decline, with a correlation of 0.36 to MSCI EM IT.

The index also has limited exposure to semiconductors and large-cap AI companies that have driven much of the recent global technology rally. Its performance therefore differs from the broader global technology cycle.

MGTI Remains Above Its 2023 Level

MGTI has gained 65.24% since its January 2023 inception despite its recent declines. The index entered August down 4.76% for 2026 and nearly 25% below its January 2025 peak.

The MAGNiTT Tech Index July 2026 Monthly Update includes constituent-level performance, regional and global benchmark comparisons, and data on correlation, beta and volatility.

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