The Competition Commission has recommended that Google pay between R300 million and R500 million annually to South African news publishers to address the “value imbalance” between the money the tech giant makes from news content and what it shares with publishers. This recommendation comes after a 16-month inquiry into the Media and Digital Platforms Market. The report, though not final, aims to determine whether digital news distribution negatively impacts competition and the news media sector in South Africa.
Google’s dominant position in the market has led to concerns about the imbalance in the revenue generated from news content. The Commission estimated that the value of news to Google’s platforms was between R800 million and R900 million in 2023, yet South African publishers earned only around R200 million in referral revenue from Google. Google, however, disputes these findings, stating that it generated R350 million in referral traffic value for publishers in 2023.
As a solution, the Commission recommends that Google make payments to a media industry fund, which will help balance the value equation in the short term. The long-term goal is to implement algorithm changes to ensure that publishers can better monetize their content. The report also proposes a potential levy on digital advertising revenue should Google and other search engines fail to implement these remedies.
The findings have sparked significant debate, with local publishers arguing that Google’s actions undermine press freedom and the financial sustainability of newsrooms in South Africa.