Google could soon be required to compensate South African media outlets up to R500 million ($27.29 million) annually after the country’s Competition Commission found the tech giant guilty of anti-competitive practices. Meta and X also face potential fines for similar actions.
In its provisional findings released Monday, the Commission revealed that Google’s algorithm significantly distorts competition by “overrepresenting global news media in South Africa for search and top stories and underrepresenting local language and community media.” This, it stated, has “materially contributed to the erosion of the media in South Africa over the past 14 years and will continue to do so unless remedied.”
The Fight for Fair Compensation
To address this imbalance, the Commission has proposed that Google pay local media outlets between R300 million and R500 million annually for a three- to five-year period. Additionally, Google is expected to adjust its search algorithms to “sustainably create shared value with the media through increases in referral traffic.”
Google, however, disputes these findings. In response, the company stated: “In 2023, our products like Google Search and News generated an estimated R350m in referral traffic value for South African publishers while we earned less than R19m from ads displayed next to news queries.” The tech giant emphasized its continued investment in publisher support, training, and partnerships.
The Social Media Factor
The Commission’s report doesn’t stop at Google. It also highlights the role of Meta and X in reducing visibility for South African news publishers. The watchdog has recommended that Facebook and X “stop deprioritising South Africa news media posts with links” in key algorithms, including For You and Latest Feed, and restore referral traffic to media platforms.
Additionally, it has urged both Meta and YouTube to increase revenue-sharing mechanisms for news publishers, ensuring that local media can better monetise their content. If these companies fail to comply within six months of the final report’s release, a 5-10% digital advertising levy will be imposed on them.
What’s at Stake for SA Media?
For years, South African media houses have struggled with declining revenues, job losses, and shrinking newsrooms, largely due to the dominance of tech giants that control the distribution of content. While Google and Meta argue that they provide value to publishers through traffic referrals, the reality is that digital advertising revenue – once a major income stream for news outlets – has overwhelmingly shifted to these platforms, leaving local publishers with a fraction of the earnings.
The Commission’s intervention signals a crucial turning point. If enforced, these measures could help restore a more balanced and sustainable digital news ecosystem in South Africa. However, tech giants have a history of pushing back against such regulations worldwide, and whether they will comply without resistance remains to be seen.
With a final report due later this year and a deadline of April 7 for all parties to submit evidence, South African media now stands at a critical juncture. Will this ruling lead to meaningful change, or will tech giants continue to dictate the terms of engagement? The answer will shape the future of journalism in the country.
