The Daily Telegraph

Zuckerberg faces revolt over Facebook encryption plans

- By Charles Hymas HOME AFFAIRS EDITOR

MARK ZUCKERBERG faces a major revolt of Facebook shareholde­rs over his message encryption plans that critics say will make it impossible to track thousands of online child sex abusers.

The rebel shareholde­rs have put down a resolution for next week’s Facebook annual general meeting which would force it to review the risks of “increased sexual exploitati­on of children” due to its plans to introduce endto-end encryption on all messages.

They are demanding a report from Facebook’s board of directors that would address the “potential adverse” impacts on children and on the company’s reputation as well as its ability to operate if regulators take action.

The rebels claim to have support that would be equivalent to 45 per cent of the shares in any normal public company. The two-track share structure that Facebook operates gives Mr Zuckerberg and a small group of insiders voting power per share which is 10 times that of other shareholde­rs. The rebel group is led by Lisette Cooper, vice-chairman of Fiduciary Trust Internatio­nal, and is backed by ISS and Glass Lewis, which wield voting power as proxies for multiple shareholde­rs.

The move follows warnings by the “Five Eyes” intelligen­ce network of nations that Facebook’s end-to-end encryption of all messages will turn it into a haven for terrorists and paedophile­s.

The company has refused direct appeals from Priti Patel, the Home Secretary, and William Barr, the US attorney general, to allow security services and police “lawful access” to messages.

Ms Patel said: “Even Facebook’s own shareholde­rs agree that its plans for end-to-end encryption risk damaging theirs and law enforcemen­t’s ability to properly protect children from sexual abuse. Facebook must listen to its shareholde­rs and enter detailed, technical discussion­s with us to identify solutions to ensure the public’s safety.”

The rebels say Facebook is already the main hub for child sex abuse material and that it may be made worse if it brings in encryption before taking steps to stamp out its use by predators.

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