Google counters South Africa’s Competition Commission’s claims of unfair profits and proposes new measures. Yango launches a food delivery service in Senegal, competing amidst previous failures in the market. Three telecom operators in Côte d’Ivoire are expanding their network to enhance rural service, following past fines for service failures. The effectiveness of these initiatives remains to be seen as the landscape evolves.
Google has refuted allegations from South Africa’s Competition Commission, which claims it has been unfairly profiting from local news publishers. The Commission’s investigation suggests that Google’s dominance in search, particularly with zero-click searches, harms the traffic and ad revenue of media houses. Google counters that its efforts are beneficial, generating significant referral traffic to local publishers while earning minimal revenue from news-related ads.
The Commission believes Google’s earnings from news searches are substantially higher than reported, estimating revenue between R800 million and R900 million. They have proposed that Google should allocate R500 million annually to support local publishers and adjust its search features to enhance traffic to news sites. The chairperson of the Portfolio Committee on Communication, Khusela Sangoni Diko, supports these recommendations, aiming for a new media policy that mandates payment for news content.
In other news, Yango Senegal has launched a food delivery service as an extension of its SuperApp, already providing ride-hailing and parcel delivery services. This move allows users to order food from partner restaurants without switching apps. Despite potential skepticism due to Jumia’s closure of its delivery service earlier in 2023, Yango is incentivizing restaurants by waiving commission fees initially, intending to increase its user base.
Yango’s service is entering a growing market fueled by urbanization and changing consumer habits in Senegal’s restaurant scene. However, the long-term success of this strategy hinges on how Yango balances its support for restaurants with eventual fee structures, assessing its impact on the local economy over time. Meanwhile, three major telecommunications companies in Côte d’Ivoire, Orange, MTN, and Moov Africa, have pledged to enhance network coverage by establishing 240 new radio sites to promote better digital access, particularly in underserved rural regions.
This initiative follows the companies’ previous fines for service quality issues, prompting them to invest directly in infrastructure rather than paying the penalties. The telecoms’ commitment aligns with Côte d’Ivoire’s aim to connect rural areas and improve service quality as part of its National Rural Connectivity Program. The government has prioritized evaluating progress to ensure accountability from the telecom companies in their expansion efforts.
Despite the technical advancements promised, there remains skepticism given the historical reluctance of telecom companies to invest in rural services due to profitability concerns. Ongoing monitoring by regulators is intended to oversee the initiative, which could potentially narrow the digital divide in the region by enhancing connectivity for the majority of the population.
In summary, Google is disputing claims of unfair revenue practices in South Africa’s news publishing sector as it faces pressure from regulators for unfair competition. Meanwhile, Yango Senegal expands its delivery service amidst a competitive market landscape, while Côte d’Ivoire’s telecom giants commit to improving rural network access. The future of these initiatives will depend on ongoing evaluations and adaptations to ensure they benefit local economies effectively.
Original Source: techpoint.africa
