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Sylvia Duruson
The South African Competition Commission has released recommendations that would require major tech companies to pay local news publishers for content use. The provisional report from the Media and Digital Platforms Market Inquiry targets Google, Meta, and X (formerly Twitter), suggesting they should provide financial compensation for news content that generates user engagement and advertising revenue on their platforms.
Google could be required to pay between R300 million ($16.3 million) and R500 million ($27 million) each year to South African publishers over a three to five-year timeframe. This proposal mirrors international precedents like Australia’s News Media Bargaining Code, which established payment structures between tech platforms and news organizations.
The Commission’s investigation highlighted how digital platforms have captured advertising revenue that once sustained traditional media. South African news publishers have experienced significant financial strain as advertising budgets shifted online, with Google and Meta capturing the majority of digital ad spending while utilizing news content without adequate compensation.
YouTube faces specific recommendations to increase revenue sharing with media companies and broadcasters to 70%. The proposal also encourages the platform to actively promote higher-value direct sales opportunities for media organizations, including the public broadcaster SABC.
Another concern addressed in the report is the deliberate reduction of news content visibility on platforms like Meta and X. This practice has diminished referral traffic to publisher websites, further undermining revenue potential for South African media companies.
The recommendations extend beyond direct payments to include collective bargaining rights. The Commission suggests South African publishers should be allowed to negotiate as a unified group with AI companies regarding the use of their content for training artificial intelligence systems. This addresses growing concerns about AI tools like ChatGPT that utilize online content without authorization or payment.
If implemented, these measures could significantly transform relationships between local media and global tech platforms. The financial support would provide critical resources for struggling newsrooms and help sustain quality journalism across South Africa.
Implementation challenges remain, however. Similar initiatives in countries like Canada and Australia have faced resistance from tech companies, sometimes resulting in news content restrictions on their platforms. The South African government may need additional regulatory measures if tech giants resist compliance with the Commission’s recommendations.
