Facebook To Spend $1 Billion On News

Facebook Inc. has confirmed that it is going to invest $1 billion in the news industry over the next three years, just a few days after the famous social media group’s short-lived ban on news in Australia.

The popular social network on Tuesday restored Australian news pages, ending an unprecedented week-long blackout after intense concessions from the government over a proposed law that will require tech giants to pay traditional media companies for their content. Google already made a similar investment last year, as technology giants are now coming under scrutiny over their business model as well as the use of their platforms to spread fake news.

READ MORE: Facebook Lifts Ban On News Pages in Australia

Facebook’s vice-president of global affairs Nick Clegg revealed the budget in a post where he defended the company's last week’s decision to temporarily restrict Australian news, saying there was a "fundamental misunderstanding" as the draft law would have allowed big media firms to demand a “blank check” from the platform.

“It is understandable that some media conglomerates see Facebook as a potential source of money to make up for their losses,” Clegg wrote. “But does that mean they should be able to demand a blank check? That’s what the Australian law, as it was proposed, would have done.”

The social media company added it was in active negotiations with news publishers in Germany and France for a deal to pay for content for its news product, where users can find headlines and stories next to a personalized news feed.