South Africa’s Competition Commission has proposed hefty fines for Google, urging it to compensate local media and adjust its algorithms to promote local content. The commission’s findings criticize the unfair digital traffic distribution that favors foreign media, calling for changes to support local journalism sustainably. Companies failing to comply may face a digital advertising tariff.
South Africa’s Competition Commission has indicated that major tech companies like Google could face substantial fines for negatively impacting local media. The regulator’s provisional findings suggest that Google should compensate local media firms with amounts ranging from 300 million to 500 million rand (approximately £22 million) annually for three to five years. In addition, it has called for changes in Google’s search algorithms to favor local media outlets and increase referral traffic.
The commission argued that Google’s search algorithm disproportionately favors foreign news sources while diminishing the visibility of local and vernacular media. This algorithm imbalance has significantly harmed the South African media landscape over the past 14 years. The commission emphasized that unless necessary adjustments are made, this issue will persist and continue to affect the local media’s sustainability.
The final report from the commission is expected to be published later this year. Relevant organizations and stakeholders have been given until April 7 to provide comments and evidence that could influence the report’s outcomes. Google has stated that it will review the commission’s claims, contending that it does not extract value from publishers and highlighting its investments in local journalism.
Moreover, the commission has recommended that platforms like Facebook, TikTok, and X (formerly Twitter) avoid de-prioritizing posts from South African news media in their algorithms. It also suggested that these platforms should enhance the visibility of local vernacular content. The 16-month investigation brought to light the digital market characteristics that inhibit fair competition in news distribution on these platforms.
To further assist local media in revenue generation, the commission urged platforms such as Meta and YouTube to provide a more favorable revenue share. The commission warns that if these recommendations are not implemented within six months after the final report, it may impose a digital advertising tariff of 5 to 10 percent targeting these companies’ South African operations.
The Competition Commission of South Africa seeks to address the imbalance in digital traffic distribution by requiring major tech companies like Google to compensate local media and adjust their algorithms. The emphasis on promoting local content and ensuring fair revenue sharing aims to support the sustainability of South African media organizations. The agency’s final recommendations will carry significant implications for these digital platforms if they are not acted upon timely.
Original Source: www.silicon.co.uk
