South Africa’s Competition Commission Goes After Google, Meta, and X

South Africa’s Competition Commission has taken a firm stand against Google, Meta (Facebook), and X (formerly Twitter), accusing them of anti-competitive practices that have marginalised local news organisations. In a landmark provisional report released on Monday, the commission proposed that Google compensate South African news publishers with an annual payment of R300 million to R500 million ($16.4 million – $27.3 million) for three to five years.

The report further recommends that if Google, Meta, and other major tech companies fail to implement fairer digital market practices within six months, the government should impose a 5-10% digital advertising tax on their South African operations.

“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,” the commission stated.

This move marks a significant moment for Africa’s media independence, as South Africa joins a growing list of nations seeking to regulate Big Tech’s dominance over news distribution.

How Big Tech Has Undermined African Media

Algorithmic Bias Against Local Journalism

The commission’s investigation found that Google’s search algorithm disproportionately favours global news outlets over local ones. This results in:

• Reduced visibility for South African media, particularly local language and community-based news platforms.
• A shift in audience traffic away from local news organisations to international media houses.
• A disadvantage for African publishers in competing for digital advertising revenue.

Similarly, Meta’s algorithmic changes on Facebook and Instagram have:

• Deprioritised South African news links in users’ feeds.
• Reduced referral traffic to local news sites, impacting their revenue.
• Lowered organic reach for African news content, making it harder for independent journalism to thrive.

Revenue Disparities and Unfair Market Control

The report highlights that Google and Meta profit immensely from South African news content without fairly compensating local publishers.

• In 2023, Google generated an estimated R350 million ($19 million) in referral traffic value for South African publishers, but its own advertising revenue from news-related searches was significantly higher.
• Local publishers receive limited user data, restricting their ability to monetise content and compete in the digital advertising market.
• Meta and Google’s platforms prioritise their own content, such as YouTube videos, over links from independent South African news outlets.

Proposed Solutions: Levelling the Digital Playing Field

To address these imbalances, the Competition Commission has proposed the following measures:

Financial Compensation for South African News Publishers

• Google must pay R300 million to R500 million annually to local media for the value extracted from news content.
• The funds will support independent, local language, and community media, which are most affected by declining revenue.

Algorithmic Reforms to Ensure Fair Representation

• Google must adjust its search algorithm to fairly rank South African news sources, reducing bias against local journalism.
• Meta and X must restore referral traffic to South African media by ending the deprioritisation of news links.
• YouTube and Meta must improve revenue-sharing mechanisms, allowing South African media to monetise their content effectively.

Increased Transparency and Access to Audience Data

• Google and Meta must share audience insights with South African publishers to help them compete in the digital advertising sector.

A Digital Advertising Levy for Non-Compliance

• If Google, Meta, and other digital platforms fail to implement these measures within six months, a 5-10% tax on digital advertising revenue will be imposed.
• The revenue from this levy will go into a Media Industry Support Fund, helping sustain independent journalism and local news production.

Google’s Response: Big Tech Pushes Back

Google has disputed the findings, arguing that it supports South African publishers through referral traffic and training programmes.

“In 2023, our products like Google Search and News generated an estimated R350 million in referral traffic value for South African publishers while we earned less than R19 million from ads displayed next to news queries,” Google said in a statement.

The company maintains that it invests in journalism development and will continue to support news publishers in the country.

Meta has not yet issued a response, but its history of deprioritising news content in favour of social engagement trends remains a major concern for regulators.

A Defining Moment for African Digital Sovereignty

South Africa’s regulatory approach aligns with global efforts to hold Big Tech accountable. Countries such as:

• Australia: Implemented the News Media Bargaining Code, forcing Google and Meta to negotiate payments with publishers.
• Canada: Passed the Online News Act, which mandates revenue-sharing agreements between tech firms and news organisations.
• European Union: Enacted the Digital Markets Act, which compels platforms to compensate media houses for their content.

What Lies Ahead?

The final Competition Commission report is expected in 2025, and affected parties have until April 7, 2025, to submit responses.

• If Google and Meta comply, it could mark a new era for fairer digital journalism in South Africa.
• If they resist, the South African government may introduce stricter penalties and regulations to ensure compliance.

Shaping the Future of African Journalism

This case is more than a dispute over advertising revenue; it is a battle for Africa’s digital sovereignty.

• Will Big Tech be held accountable for exploiting African media?
• Can South Africa set a precedent for other African nations to demand fair compensation from tech giants?
• Will these measures revitalise independent journalism, ensuring that African stories are told by African voices?

The coming months will be crucial in determining whether South Africa leads the way in reshaping the continent’s digital media landscape.