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The Competition Commission of South Africa has recommended that Google compensate local news media between $15.9 million and $26.5 million annually over a three- to five-year period to address concerns over digital platform dominance and fair revenue distribution.
This is one of the key findings in the commission’s highly anticipated provisional report following a 16-month investigation into the media and digital platforms market.
The commission’s proposals extend beyond Google, targeting Meta Platforms (Facebook), X (formerly Twitter), and other major social media and tech companies. It has also warned that non-compliance with its recommendations could result in a 5-10% levy on these tech giants to further support the local media industry.
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Meta and X
Additionally, the commission has directed Meta to stop de-prioritizing news content on Facebook, demanding at least a 100% increase in referral traffic for South African media outlets.
Meta and X must also restore news links in user feeds, setting the stage for a potential battle between the commission and global tech giants, who have resisted similar measures in other countries.
The commission has suggested that Google pay up to $26.5 million per year to correct what it calls an “imbalance in shared value.” The internet giant has been urged to make sustainable changes to its search algorithms to boost local news referral traffic, reduce bias favouring foreign media and YouTube, and promote vernacular and community media outlets.
The commission has also proposed several key measures to ensure fairer digital competition:
- YouTube should increase the revenue share for media organisations and broadcasters to 70% and actively promote higher-value direct sales for local publishers.
- Regulatory changes to introduce platform liability for harmful content and misinformation under the Electronic Communications and Transactions Act.
- Social media and search platforms should share anonymised user data with media houses to help them better understand and monetise their audiences.
- AI companies should negotiate content deals with media houses to use their content for training chatbots, ensuring local publishers are fairly compensated and not sidelined by global media players.
The Competition Commission emphasised that journalism remains essential for democracy, public accountability, and free expression. However, the shift to online news consumption has disrupted traditional revenue models, creating new challenges for the industry.
“While the media must adapt to digital disruption, our inquiry finds that dominant digital platforms have made it even harder for news publishers to compete and monetise their content,” the commission stated.
The provisional report names several tech giants, including Google, Meta, Microsoft, OpenAI, X, and TikTok, as key players whose business practices negatively impact digital advertising and journalism in South Africa.
The commission emphasised that these findings and recommendations are not final and encouraged stakeholders and the public to submit responses before the April 7, 2025 deadline.
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