Facebook on Wednesday pledged to invest at least $ 1 billion in the news industry over the next three years, days after a high-profile confrontation with the Australian government over paying news outlets for content.
The social network’s commitment to the news industry comes on the heels of Google’s billion-dollar investment last year, as tech giants come under scrutiny over their business model as well as the spread of misinformation on their platform.
Facebook on Tuesday reinstated Australian news pages, ending an unprecedented week-long blackout after extracting concessions from the government on a proposed law requiring tech giants to pay traditional media companies for their content.
The short blackout shocked the global news industry, which had already seen its business model altered by the tech giants.
In a blog detailing its version of the confrontation, Facebook said the news blocking was linked to a “fundamental misunderstanding” of the relationship between the company and news publishers.
It also acknowledged that some non-news content was inadvertently blocked when it banned all news content.
Facebook said on Wednesday that it has already invested $ 600 million in the news industry since 2018.
The social media company added that it is actively negotiating with news publishers in Germany and France for a deal to pay for the content of its news product, where users can find headlines and stories alongside a dedicated news feed.