The Competition Commission of South Africa demands annual compensation from Google, ranging from R300 million to R500 million, for local news media. This follows a comprehensive inquiry into the impact of tech platforms on journalism. The Commission also targets Meta and X, calling for changes in how news content is treated. Numerous recommendations aim to enhance the monetization and support for local media.
The Competition Commission of South Africa has proposed that Google compensates local news media between R300 million and R500 million annually over a period of three to five years. This proposal stems from its 16-month inquiry into the media and digital platforms market, which reveals a significant imbalance in shared value between tech platforms and local media.
Additionally, the Commission is targeting other tech giants, including Meta and X, urging them to cease practices that de-prioritize news content. Failure to comply may lead to a 5-10% levy on these companies to support South African media.
Regarding Google, the Commission recommends corrective actions, including removing search bias against local media and ensuring better promotion of vernacular and community outlets. This is part of a broader objective to sustainably enhance referral traffic to local news.
The draft report also suggests improvements for YouTube, such as increasing the revenue share for media content to 70% and promoting direct sales by local broadcasters. It emphasizes the importance of partnerships in combatting misinformation through fact-checking initiatives and ensuring comprehensive data sharing between platforms.
The inquiry highlights that digital platforms, while not producing news, impact journalism’s viability. Hence, there’s a need for collective negotiation by the media with AI companies to secure fair content deals, avoiding favoritism towards global partners.
The Commission stresses that a vibrant news media sector is vital for democracy and accountability, asserting that the challenges faced by journalism are compounded by platform behaviors that limit media monetization opportunities. Further stakeholder input is invited until April 7 to refine these findings and recommendations.
The Competition Commission’s push for substantial compensation from Google and other tech giants aims to address the economic challenges faced by South African news outlets. Their recommendations emphasize reversing damage caused by digital platform practices, enhancing revenue shares for local media, and mitigating misinformation. This initiative could reshape the financial landscape for journalism in the country, ensuring that media play an effective role in democracy and public accountability.
Original Source: techcentral.co.za
