South Africa’s Competition Commission has urged the Department of Communications and Digital Technologies to establish a dedicated regulatory structure for a social media ombudsman, aimed at safeguarding consumers in conflicts with major platforms. This proposal emerges as a core recommendation from the commission’s exhaustive Media and Digital Platforms Market Inquiry, finalised after 24 months of investigations, hearings, expert inputs and stakeholder consultations, including public surveys and focused discussions.
Launched under section 43B(1)(a) of the Competition Act of 1998, the probe addressed concerns that digital intermediaries were distorting competition in news content distribution, eroding the sector’s foundational goals. Findings spotlighted imbalances where platforms like Meta’s Facebook, Instagram and WhatsApp, alongside YouTube, X and TikTok, reap substantial gains from news engagement and advertising, yet offer no direct remuneration to content creators who bear production costs.
Consumers’ preference for convenient aggregator access amplifies platforms’ sway via opaque algorithms that dictate visibility and traffic flows, often sidelining independent media. The report delineates tailored findings and remedies per platform, advocating for enhanced transparency in algorithmic decisions and fairer revenue-sharing mechanisms to empower local publishers.
Central to the ombudsman vision is its mandate to mediate user grievances over harmful, deceptive or unethical online conduct, escalating unresolved cases to pertinent authorities. This body would foster an industry code of conduct under the Electronic Communications and Transactions Act, granting platforms limited liability protections in exchange for adherence and swift response to takedown requests from a self-regulatory entity.
As reported by ITWeb, the commission also presses the Department of Trade, Industry and Competition to grant block exemptions, facilitating collective negotiations by South African media on monetisation deals, AI licensing fees, ad-tech pricing and collaborative sales for community outlets. Such measures seek to counter platforms’ dominant bargaining leverage, where global ad revenues from SA content exceed R10 billion annually, yet local firms capture scant shares.
The inquiry underscores broader perils, including algorithmic biases that favour sensationalism over quality journalism, exacerbating misinformation in a nation where 70 per cent of adults rely on social media for news. According to Business Day, similar ombuds models in Australia and the UK have proven effective in resolving disputes without full regulatory overreach, potentially serving as blueprints for South Africa amid rising calls for digital accountability.
Implementation could reshape the R50 billion media landscape, bolstering sustainability for outlets hit by ad migration to platforms. With government commitments to digital economy growth under the National Development Plan, this framework aligns with efforts to nurture a competitive ecosystem, ensuring platforms contribute equitably while upholding free expression. As the DCDT reviews the report, stakeholders anticipate swift action to address asymmetries that have strained news viability since the mid-2010s.