Facebook has pledged at least $1bn to pay for news over the next three years, matching Google’s spending plans in a move that aims to contain the fallout from the social media group’s shortlived ban on news in Australia.
Nick Clegg, Facebook’s vice-president of global affairs, disclosed the budget in a post defending last week’s decision to temporarily restrict Australian news because of a draft law that would have allowed big media firms to demand a “blank check” from the platform.
“Many people are rightly asking: what on Earth was all that about?” wrote Clegg in a Facebook post. “At the heart of it, in Facebook’s view, is a fundamental misunderstanding of the relationship between Facebook and news publishers.”
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