The Media and Digital Platforms Market Inquiry, initiated by the SA National Editors’ Forum in 2023, found that tech giants Meta, Google, X (formerly Twitter), and YouTube have engaged in unfair commercial practices, significantly impacting local media houses.
The Commission has ordered a fine to be paid over three years. However, news editors argue that the penalty is too modest to compensate for the losses suffered by the industry.
In an interview with Channel Africa on Wednesday, Noluthando Jokazi, the Technical Lead at the Competition Commission and the Media and Digital Platforms Market Inquiry provided insight into the Commission’s findings after 16 months of investigations and evidence gathering.
Jokazi highlighted that the shift in consumer behaviour towards digital platforms has led to an imbalance in advertising revenue distribution, favouring big tech companies over traditional newspapers and broadcasters. She noted that media houses struggle to negotiate fair compensation for their content, while platforms benefit significantly from journalism without proper remuneration.
The Commission has raised concerns about a lack of transparency in digital advertising, making it difficult for publishers to assess their data and the role of platform algorithms in determining ad revenues. Platform biases were also identified as a major issue, with Google prioritising its services in search rankings and ad placements, while YouTube favours its video content over independent creators.
Another pressing concern is the impact of artificial intelligence (AI) and content aggregation. Increasing reliance on AI-generated news summaries prevents users from clicking through to news websites, further reducing traffic and revenue for publishers. The report warns that without intervention, independent and community-based media, particularly vernacular-language publications, could face severe decline.
Jokazi explained that SA has adopted a different approach from other nations such as Canada, the United States, Australia, and the European Union.
While some countries have created media funding pools that critics argue benefit large outlets over smaller ones, SA's proposed solution aims to support both mainstream and community media through sustainable revenue-sharing mechanisms.
Regarding the proposed fine of between $16.31 million and $27,19 million, Jokazi stated that the Commission based its calculations on extensive data analysis, estimating that 10-15% of Google’s search queries are news-related, contributing to its credibility as a trusted platform.
The fine was determined by balancing Google’s overall search ad revenue with the value news content provides to the platform.
While the tech giants have not yet responded to the findings, Jokazi confirmed that stakeholders have six weeks to review the report and submit feedback. The Commission anticipates further engagement with the platforms to establish fairer revenue-sharing agreements and ensure the sustainability of SA’s media landscape.
--ChannelAfrica--
