Facebook to invest USD 1 billion in news industry over next 3 years
New Delhi | Jagran Technology Desk: Days after a high-profile stand-off with the Australian government over paying news outlets for content, Facebook on Wednesday announced an investment of at least USD 1 billion in the news industry over the next three years.
The social network's commitment to the news industry follows Google's USD 1 billion investment last year, as technology giants come under scrutiny over their business model as well as the proliferation of misinformation on their platform.
On Tuesday, Facebook restored Australian news pages, ending an unprecedented week-long blackout after wringing concessions from the government over a proposed law that will require tech giants to pay traditional media companies for their content.
The brief blackout shocked the global news industry, which has already seen its business model upended by the tech giants.
In a blog detailing its version of the showdown, Facebook said the news ban was related to a "fundamental misunderstanding" of the relationship between the company and news publishers.
It also acknowledged that some non-news content got inadvertently blocked when it banned all news content. Facebook said on Wednesday it has already invested $600 million in the news industry since 2018.
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.
Meanwhile, Facebook and the Australian government's agreement enabling users to share news links on the platform is being closely watched by regulators around the world.
According to The Hill, the relationship between the power of tech platforms and the steep decline in news media revenue has become a key issue for lawmakers in the US and abroad, with many proposing changes that would strike at the digital ad market dominance of social media firms.
Posted By: Abhinav Gupta