South Africa’s Competition Commission has recommended that Google pay between 300 million to 500 million rand ($27.29 million) annually to local media outlets, following provisional findings that the tech giant’s search algorithms disadvantage local news publishers. The proposed compensation, intended for a three-to-five-year period, aims to address the erosion of South Africa’s media sector over the past 14 years and boost referral traffic to local media through algorithmic changes.
The commission’s report, released on Monday, stated that Google’s search results overrepresent global news outlets while underrepresenting local and community media. This imbalance, it argued, has negatively impacted the reach and financial sustainability of South African news publishers. The final report is expected later this year, with all parties, including Google, given until April 7 to submit evidence.
Google responded by disputing the claims of taking disproportionate value from publishers. The company stated that its products, such as Google Search and Google News, generated an estimated 350 million rand in referral traffic for South African publishers in 2023 while earning less than 19 million rand from ads next to news content. Google also highlighted its investments in products, training, and partnerships aimed at supporting the local news ecosystem.
The commission’s recommendations extend beyond Google, targeting social media platforms owned by Meta and X (formerly Twitter). Meta’s Facebook and X were urged to stop deprioritizing posts from South African news media in their algorithms, including feeds like “For You” and “Latest Feed,” to help restore referral traffic. Additionally, Meta and Google’s YouTube were advised to enhance monetization opportunities for news publishers by increasing revenue shares.
Should these companies fail to implement the recommended changes within six months of the final report’s publication, the Commission suggested imposing a digital advertising tariff or levy of 5-10% on their South African operations.
Meta did not provide an immediate response to the report. The Commission clarified that the proposed measures apply only to the South African operations of the involved companies, emphasizing the need for fair competition and the sustainability of local journalism in the digital age.
This development is part of a global trend where governments and regulators are seeking fairer compensation for local media from tech giants that dominate digital advertising and content distribution. As the deadline approaches, the industry will be closely watching how these tech companies respond and whether they will align their practices with the Commission’s recommendations.
