The Competition Commission initiated an inquiry at the close of 2023 in response to concerns about potential anti-competitive practices in digital platforms that distribute news media content. The provisional report released by the Commission found Google guilty of such practices, suggesting that the tech giant may need to compensate South African media outlets up to R500 million annually.
Google has expressed its intent to review the Commission’s report, although it disagrees with the assertion that it has extracted disproportionate value from publishers. The company highlighted that in 2023, its products like Google Search and News generated an estimated R350 million in referral traffic value for South African publishers, while earning less than R19 million from ads displayed alongside news queries. Google emphasized its ongoing investments in products, training, and partnerships to support publishers and the wider news ecosystem.
The Commission recommended that Google make annual payments of R300 million to R500 million for three to five years to address the perceived imbalance in shared value with the media. This includes eliminating search bias in favor of foreign media and YouTube, as well as promoting vernacular and community media.
In addition to Google, the Competition Commission also made recommendations for YouTube and other tech companies operating in South Africa. These suggestions include improving revenue sharing with media and broadcasters on YouTube, enhancing the ability to monetize content, addressing misinformation, and fostering collaboration between social media platforms and the media for fact-checking.
Furthermore, the Commission proposed measures to allow the media to collectively negotiate with artificial intelligence companies for content deals to train AI chatbots. It emphasized the importance of the news media in upholding free expression and democracy, while acknowledging the challenges posed by the digital shift in news consumption.
The Competition Commission is set to publish a final report later this year, with stakeholders given until April 7th to submit supporting evidence. The findings and recommendations from the inquiry aim to address the evolving landscape of digital platforms and their impact on the traditional media industry in South Africa.
