South Africa Initiates Inquiry into Digital Platforms’ Impact on News Publishers

South Africa’s Competition Commission announced on Tuesday its intention to scrutinise the practices of digital giants like Meta and Google to determine if they unfairly compete with news publishers by leveraging their content to generate ad revenue.

The inquiry, set to explore various market features, aims to unveil potential distortions in the competition for advertising revenue between news media organizations and digital platforms. Commissioner Doris Tshepe emphasized the critical timing of the investigation, as news consumption undergoes a rapid shift to online platforms while traditional funding sources, such as print and broadcast advertising, decline.

Chief Economist and Acting Deputy Commissioner James Hodge highlighted the evolving habits of media consumers, relying increasingly on video-sharing platforms, news aggregators, and social media for news access and revenue. Hodge emphasized the pressing need to promote diversity in news and public interest journalism amid these changes.

The investigation will encompass a wide array of digital entities, including general search engines like Alphabet’s Google and Bing, social media platforms such as Meta and X, news aggregation platforms, video-sharing platforms like YouTube and TikTok, and ad networks such as Google Ads.

In a noteworthy move, the inquiry will also delve into the realm of generative artificial intelligence, specifically examining OpenAI’s ChatGPT and how it employs original news content in its output. This broader investigation reflects a growing awareness of the intricate interplay between technology, information dissemination, and market dynamics in the digital age.

The Competition Commission’s initiative underscores South Africa’s commitment to fostering fair competition and ensuring the preservation of a vibrant and diverse media landscape, even in the face of rapidly changing consumer habits and evolving digital platforms.