Google may be required to pay South African news media between R300 million and R500 million annually for up to five years, potentially totaling R2.5 billion, under new recommendations from the country’s Competition Commission. The proposal, outlined in a provisional report following a 16-month inquiry into media and digital platforms, seeks to address the financial and algorithmic disadvantages local news publishers face in the digital economy. The commission argues that major tech platforms have disrupted traditional media revenue models, making it difficult for news organisations to monetize their content effectively.
Beyond financial compensation, the commission recommends that Google adjust its search algorithms to boost referral traffic to South African news websites, eliminate bias favoring foreign media and YouTube content, and promote vernacular and community media.
Meta (Facebook) and X (formerly Twitter) also face strict recommendations, including restoring news referral traffic to previous peak levels with a 100% increase in traffic to local news sites. Both companies must also stop deprioritizing news content in their algorithms. Failure to comply could result in a levy of 5-10% on their South African revenue to support local journalism.
For YouTube, the commission suggests increasing revenue-sharing for news content to 70% and encouraging direct ad sales by media companies to maximize earnings. The inquiry also highlights concerns over misinformation and AI-generated content. Proposed measures include amending the Electronic Communications and Transactions Act to introduce platform liability for harmful content, requiring tech companies to compensate fact-checkers, and allowing South African media firms to negotiate content licensing for AI training datasets. If AI models fail to prioritise local news sources, regulators could take further action.
These recommendations set the stage for a potential clash between South African regulators and global tech giants. Similar initiatives in Australia and Canada faced resistance, with platforms like Meta and Google threatening to block news content rather than comply. However, the Competition Commission remains firm, arguing that journalism is essential to democracy and that Big Tech’s current practices undermine fair competition in digital advertising and news distribution.
The report remains provisional, with public and industry feedback invited until April 7 before final recommendations are finalized. If implemented, these measures could reshape the relationship between global tech firms and South Africa’s news industry, potentially setting a precedent for other emerging markets.
