According to industry reports, the Competition Commission in South Africa is urging Google to financially “compensate” news media with annual payments ranging from US$16 million to US$27 million over three to five years. This recommendation comes from the commission’s long-awaited provisional report, which results from a thorough 16-month inquiry into the media and digital platforms market.
The commission’s focus is not solely on Google; it also targets other tech giants such as X and Meta Platforms. Moreover, it has warned that if these companies fail to cooperate with the suggested remedies, it may consider imposing a levy of 5-10% on them to support the local media industry.
Specifically regarding Meta, the commission demands that the company reverse its de-prioritisation of news on Facebook, aiming for at least a 100% increase in referral traffic to media outlets from its peak levels. Similarly, both Elon Musk’s X and Meta are being asked to stop diminishing the visibility of news content within user feeds. This sets the stage for significant negotiations between the commission and these major tech entities, as they have resisted similar proposals in other countries.
For Google, the commission has recommended payments of up to US$27 million per year, asserting this is necessary to correct what it sees as an “imbalance in shared value.” The aim is to implement changes in Google Search to enhance referral traffic to media outlets, which includes eliminating any search bias favouring foreign media and YouTube and promoting local vernacular and community media.
Furthermore, the competition watchdog has proposed several changes in its draft report. These include:
- Enhancing YouTube’s capabilities to help media and broadcasters, such as the SABC, by increasing their revenue share to 70% and actively promoting higher-value direct sales.
- Modifying the Electronic Communications and Transactions Act to introduce platform liability for harmful content and misinformation, encouraging social media platforms to partner with media organisations on fact-checking efforts.
- Improving data sharing by search and social media platforms to allow for better insights and monetisation of audiences engaging with news content.
- Allowing the media to negotiate collectively with artificial intelligence companies regarding content deals for training AI chatbots. If this is not facilitated, measures should be implemented to prevent AI chatbots from favouring global media entities and to enhance traffic to local news sources.
The commission emphasises the crucial role of the news media in upholding free expression and democracy by informing the public and holding institutions accountable. It acknowledges that the media industry is experiencing rapid changes due to a shift toward online news consumption, disrupting traditional revenue models and prompting new business strategies.
While acknowledging the challenges posed by digitalisation, the inquiry suggests that these difficulties are worsened by the practices of platforms that limit the capacity of news media to obtain and monetise digital traffic. Notably, it distinguishes that digital platforms do not create news themselves and cannot substitute for the role of journalism.
In light of the extensive evidence collected, the provisional report outlines initial findings against major tech companies, including Google, Meta, Microsoft, OpenAI, X, and TikTok. It proposes potential remedies to address issues affecting competition in digital advertising and journalism in South Africa.
It is important to note that these findings and proposed remedies are provisional; further input and evidence submitted by stakeholders and the public are expected by 7 April, which could modify the report’s conclusions and recommendations.
