Google Set To Reviews Competition Commission Report Over Media Payments

Google says, it will review a report by South Africa’s Competition Commission, which suggests the tech giant could be required to pay up to R500 million annually to local media outlets.

Provisional findings of the Competition Commission’s Media and Digital Platforms Market Inquiry, released on Monday, concluded that Google engaged in anti-competitive practices. It examined the impact of digital platforms such as Google, YouTube, and Facebook on advertising revenues and traditional media sustainability.

Meanwhile, Google pledged to study the report in detail but refuted claims that it has taken an excessive share of value from publishers. In a statement, the company asserted that in 2023, its services—Google Search and News—generated approximately R350 million in referral traffic value for South African publishers, while the company itself earned less than R19 million from adverts placed next to news-related searches.

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“Alongside this, we have invested in products, training, and partnerships to support publishers and the broader news ecosystem and will continue to do so,” Google stated.

Furthermore, the Competition Commission recommended that Google pay an annual compensation of between R300 million and R500 million for three to five years. The funds would address what the Commission describes as an “imbalance in shared value,” while Google implements changes to its search algorithms to enhance traffic referrals to South African media outlets.

Key recommendations include removing search biases that favour foreign media and YouTube, as well as promoting vernacular and community news sources.

Inquiry was launched at the end of 2023 to investigate concerns that digital platforms distributing news content may hinder competition and limit opportunities for local media outlets.

It also addressed the role of YouTube, recommending an increased revenue share of 70% for local media and broadcasters, including the South African Broadcasting Corporation (SABC). The Commission further urged YouTube to actively promote direct sales for media houses to maximise revenue.

To tackle misinformation, the report suggested amending the Electronic Communications and Transactions Act to introduce platform liability for harmful content. It proposed that social media platforms collaborate with and compensate media outlets for fact-checking services.

Additionally, it called for search and social media companies to share richer anonymised user data with publishers, allowing them to better understand their audiences and improve monetisation.

Regulator also recommended that media houses be allowed to negotiate collectively with artificial intelligence (AI) firms regarding content licensing agreements for AI training purposes. If such agreements are not reached, measures should be implemented to prevent AI chatbots from favouring global media outlets over local publishers.

The Competition Commission emphasised that a robust and independent news media sector is critical for democracy, as it informs the public and holds institutions accountable.

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Its acknowledged that global trends in digital news consumption have disrupted traditional revenue models, but argued that dominant digital platforms exacerbate these challenges by limiting publishers’ ability to monetise digital content.

“These digital platforms do not produce news themselves and cannot replace journalism’s role,” the Commission stated.

However, the final report on the matter will be published later this year, with stakeholders given until 7 April to submit additional evidence before a definitive ruling is made.

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