The South African Competition Commission suggests major tech firms should compensate local news publishers for content usage. Proposals include a financial obligation for Google of up to R500 million annually and enhanced revenue sharing on YouTube. The report addresses reduced visibility on platforms affecting traffic to news sites and advocates for collective bargaining rights for publishers in negotiations with AI companies.
The South African Competition Commission has proposed that major technology companies, including Google, Meta, and X (formerly Twitter), must compensate local news publishers for the usage of their content. This recommendation, part of the Media and Digital Platforms Market Inquiry, aims to address the financial strain on news publishers caused by digital platforms capturing traditional advertising revenues.
The report anticipates that Google could be obliged to pay local publishers between R300 million and R500 million annually over three to five years, reflecting similar international initiatives like Australia’s News Media Bargaining Code. As digital advertising budgets continue to migrate online, the financial viability of South African news publishers has been substantially threatened.
YouTube is specifically encouraged to enhance revenue sharing with media companies to a proposed 70%. Furthermore, the platform should assist media organizations, including public broadcasters like the SABC, in promoting higher-value direct sales opportunities, thus supporting their financial sustainability.
Another issue identified is the deliberate reduction of news content visibility by platforms like Meta and X, which diminishes referral traffic to news sites and exacerbates revenue issues for publishers. This reduction undermines the potential income of South African media companies trying to sustain operations in a challenging environment.
The recommendations urge collective bargaining rights, allowing South African publishers to negotiate as a single entity with AI companies regarding the use of their content for training purposes. This tackles concerns related to AI tools, such as ChatGPT, that utilize online content without proper authorization or compensation.
If these measures are implemented, they could profoundly impact the dynamics between local media and global tech platforms, enhancing financial support for struggling newsrooms and promoting quality journalism across South Africa. However, challenges remain, as similar initiatives in other countries have faced pushback from tech giants, sometimes leading to restrictions on news content availability.
The South African government may need to consider additional regulatory actions to ensure compliance from these technology companies regarding the Commission’s recommendations, aiming to create a more equitable media landscape.
The South African Competition Commission has put forth significant recommendations which could reshape the relationship between tech companies and local news publishers. Key measures include financial compensation for content use, increased revenue sharing, and collective bargaining rights for publishers. If enacted, these proposals could provide essential support to struggling media outlets, though challenges like resistance from tech companiesmay pose obstacles to implementation.
Original Source: www.techinafrica.com
