Australian news will return to the social media giant's platform, and it will reach deals to pay news groups for their stories. So, who won this titanic battle and how will that play out around the world?
The former boss of Facebook in Australia is pretty clear.
"I'd say Facebook may have blinked a bit here," Stephen Scheeler told BBC Radio 4's Today programme. "I think there's no question that global backlash against this was pretty stern.
"And I think Facebook probably observed that governments around the world were taking a harder line maybe than they had anticipated."
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