South Africa’s Competition Commission is investigating Google for allegedly profiting unfairly from local news publishers. The commission claims Google’s “zero-click” searches harm media by reducing traffic and revenue for publishers. Google disputes this, stating it supports publishers by driving referral traffic. The commission recommends Google pay R500 million annually to publishers and amend search features to enhance traffic. The situation reflects ongoing tensions between digital platforms and traditional media.
The South African Competition Commission is rigorously examining Google’s actions concerning local news publishers. After a 16-month probe, it concluded that Google unlawfully claims a substantial portion of revenue from these publishers, worsening the already precarious state of the media sector. The focus is on “zero-click” searches, where users get answers from Google without visiting publisher sites, significantly harming traffic and revenue for media organizations.
Google has contested the accusations, asserting that it benefits publishers by directing traffic to their sites. The company claims it generated around R350 million (about $18 million) worth of referral traffic for South African publishers in the past year, while its ad revenue from news-related searches was under R19 million ($1 million).
Contrarily, the commission estimates Google’s actual earnings from news-related searches to be between R800 million and R900 million ($42 million–$47 million). To rectify this, they recommend that Google provide R500 million ($26 million) annually to local publishers and adjust its search features to enhance website traffic.
Khusela Sangoni Diko, chair of the Portfolio Committee on Communication and Digital Technologies, strongly backs the commission’s recommendations. She argues that these changes could prompt essential reforms, potentially leading to a new media policy requiring platforms such as Google and YouTube to compensate news publishers for the content they utilize.
Currently, Google is evaluating the commission’s findings before issuing a comprehensive response. Nevertheless, it is clear that this dispute between the tech giant and South African regulators will continue to evolve.
This ongoing scrutiny illustrates the growing tension between digital platforms and traditional media, highlighting the challenges of fair compensation in the ever-shifting landscape of news dissemination. Through these investigations, authorities aim to ensure equitable revenue sharing that supports a sustainable media environment in South Africa.
The South African Competition Commission’s ongoing investigation into Google underscores significant concerns regarding the platform’s impact on local news publishers. While Google defends its role in generating referral traffic, the commission’s estimates suggest higher revenues for Google from news queries. The recommended financial contributions to publishers signify a potential shift towards fairer revenue practices in the media industry. Future developments in this case will be crucial for shaping the media landscape in the digital age.
Original Source: www.techinafrica.com
