South Africa’s Competition Commission proposes that tech giants like Google and Meta compensate local news publishers between $16.3 million and $27 million annually. The initiative seeks to support struggling media outlets, enhance monetization, and allow collective negotiations with AI companies over content use. Successful implementation hinges on compliance from global tech firms, which may set a precedent for other African nations.
South Africa’s Competition Commission is advocating for technology companies, including Google and Meta, to financially support local news publishers for using their content. The proposal suggests that Google could pay annual compensation of R300 million ($16.3 million) to R500 million ($27 million) over three to five years to help offset the financial decline experienced by local media. This initiative aims to recapture referral traffic that has diminished due to changes in content prioritization.
In its inquiry report, the Commission emphasizes enhancing monetization strategies for South African media through platforms like YouTube, advocating for a revenue share increase to 70% for media companies. The Commission holds major digital platforms accountable for leveraging news content that drives user engagement and advertising income without fair compensation to publishers.
The South African media sector has faced significant challenges as advertising revenue has shifted towards predominantly digital channels. Tech firms, particularly Google and Meta, command a significant share of online advertising in South Africa while providing minimal revenue to content creators. The Commission has noted a concerning trend where Meta and X have actively reduced the visibility of news content, negatively impacting referral traffic and revenue for local publishers.
In addition to financial compensation, the Commission proposes allowing local news publishers to negotiate collectively with artificial intelligence firms regarding the use of their content for AI training. This recommendation is intended to bolster the negotiating power of media houses and ensure they receive fair compensation for their work in the evolving digital landscape.
If the recommendations are enacted, they could fundamentally alter the dynamics between South African media organizations and international tech giants. Financial contributions from companies like Google would aid in stabilizing struggling news outlets and preserving the quality of journalism. However, challenges remain regarding enforcement, as similar efforts globally have faced resistance from tech companies.
An effective implementation of these proposals hinges on the cooperation of tech firms, which may resist new regulations as seen in other countries. If necessary, the South African government may need to introduce additional legislative measures to ensure compliance from these corporations. The Competition Commission’s initiative represents a critical step towards securing fair compensation for local news outlets, acknowledging their essential contribution to digital platforms.
The South African Competition Commission is pushing for a compensation framework requiring tech companies like Google and Meta to pay local media for content usage. Annual payments between R300 million and R500 million aim to stabilize the financially struggling media industry. Additional measures include collective negotiations with AI firms to protect content creators. The success of these initiatives depends on tech giants’ compliance, which could redefine the media landscape in South Africa and possibly influence similar actions across the continent.
Original Source: techpoint.africa
