South Africa’s Competition Commission is investigating major tech companies like Google and Facebook for anti-competitive practices impacting local media. Following a 16-month inquiry, the Commission recommends Google pay local publishers up to 500 million rand annually for five years. Affected companies have six weeks to respond before a final decision, which may include measures for other platforms like Twitter and TikTok.
The South African Competition Commission has initiated actions against major technology firms, including Google and Facebook, due to concerns over their anti-competitive practices that adversely affect local media companies. Following a comprehensive 16-month investigation, the Commission has urged Google to compensate local news publishers up to 500 million rand ($27 million) annually for five years, arguing that Google’s policies hinder South African outlets from effectively monetizing digital traffic.
The Commission’s findings are still preliminary, allowing affected companies six weeks to respond before a final decision is issued within the next four to five months. In addition to Google, the regulatory body has suggested remedies for other digital platforms, such as Elon Musk’s X (formerly Twitter), YouTube, and TikTok. These platforms are expected to mitigate biases favoring international media and promote local vernacular and community media outlets.
The Commission has noted that certain characteristics of digital platforms impede competition in distributing news content. In response, Google refuted these claims, asserting that its services helped South African publishers create an estimated 350 million rand in referral traffic value in 2023, while the company earned less than 19 million rand from news-related advertisements. Google emphasized its ongoing commitment to supporting local publishers through various initiatives.
The findings of the Competition Commission press global tech firms to reevaluate their impact on local media markets. Should the proposed actions be enforced, they could have significant financial and operational ramifications for these companies, necessitating a strategic reassessment of their practices in South Africa.
The South African Competition Commission has highlighted serious concerns regarding the operations of major tech firms within the local media landscape. With significant financial implications on the horizon, global companies must consider their role in supporting local publishers and ensuring fair competition. The final ruling will be pivotal in defining the future relationship between tech giants and South African media initiatives.
Original Source: www.pymnts.com
