Trade, industry and competition minister Parks Tau has approved a four-month extension for the Competition Commission (CompCom) to finalise the findings and recommendations of the Media and Digital Platforms Market Inquiry.
This, after the competition watchdog published the provisional findings of the market inquiry in February.
The CompCom examined the influence of major digital platforms – such as Google, Meta and X (formerly Twitter) − and generative AI tools like ChatGPT on the country’s news media industry.
The watchdog wanted to determine whether the conduct of these platforms restricts fair competition and contributes to the erosion of newsroom revenues.
Among other takeaways, the CompCom recommended internet search giant Google compensate the local news media R300 million to R500 million annually for a three- to five-year period, for the imbalance in shared value.
The commission also wants Google to put in place changes to search that will sustainably create shared value with the media through increases in referral traffic.
The report came after 16 months of extensive evidence-gathering, public and in-camera hearings, expert report submissions, consultation with industry role players, a consumer survey and focus group discussions, said the CompCom.
In a Government Gazette last week, Tau said: “As published under Government Notice No 3880 of Government Gazette No 49309, the 18-month period for completion of the Media and Digital Platforms Market Inquiry (MDPMI) and a final report will expire on 23 April 2025.
“The commission requested an extension in terms of section 43B(4)(b) of the Competition Act, 1998 to allow for a reasonable period to further consider the draft final report, draft remedial actions and recommendations, and to finalise engagements with certain affected stakeholders before a decision is taken on the report.
“In terms of section 43B(4)(b) of the Act, I hereby extend the period for completion of the MDPMI and the final report for a period of four months until 22 August 2025.”
According to the competition watchdog, Google’s monopoly position and the unequal bargaining position of the media means there has not been an equitable share of value between the internet search giant and news publishers in South Africa, both historically and currently.
It notes this inequity has materially contributed to the erosion of the media in South Africa over the past 14 years and will continue to do so unless remedied.
Google denied the allegations, saying that in 2023, its products – such as Google Search and News − generated an estimated R350 million in referral traffic value for South African publishers, while it earned less than R19 million from ads displayed next to news queries.
Khusela Sangoni Diko, chairperson of the Portfolio Committee on Communication and Digital Technologies, welcomed the CompCom’s recommendations.
Diko believes the recommendations strengthen the committee’s call for urgent publication of a white paper on audio and audiovisual media services and online content safety by the Department of Communications and Digital Technologies.
She added that the recommendations on Google and YouTube, among others, will hopefully serve as deterrent to everyone that the lack of direct regulation in the sector is not a licence for unscrupulous business practices.
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