The South African Competition Commission has released a provisional report suggesting remedies to address the imbalance in digital news distribution caused by major platforms like Google, TikTok, and Meta. The report includes recommended financial reparations and changes to algorithms to better support local news organizations. The public may comment for six weeks, with a final report due in several months. Notably, many South Africans face economic barriers to accessing news, a critical issue for information rights.
The South African Competition Commission has issued a provisional report aimed at addressing imbalances in the distribution and traffic of news in the digital age. This report is a response to the dominating influence of major digital platforms such as Google, TikTok, and Meta on the news landscape. Public commentary on the proposed remedies will be accepted for six weeks following the report’s release on February 24, with a final report expected in approximately four to five months.
The investigation, spanning 16 months, revealed that digital platforms now account for 87% of news audience engagement. This shift occurs as traditional print media continues to struggle for relevance, leading to an increased online presence of journalists. The investigation was conducted under section 43B(1)(a) of the Competition Act 89 of 1998, underscoring the Commission’s rigorous approach to assessing the impact of these digital giants on the media.
Among its recommendations, the Commission suggests that Google compensate local news entities between ZAR 300 million (USD 16.2 million) and ZAR 500 million (USD 27.1 million). Furthermore, it encourages tech giants to modify algorithms to favor local news coverage, enhance accountability for misinformation, and support news organizations in monetizing their content more effectively.
The inquiry also examined the broader implications of digital innovations such as Artificial Intelligence (AI) and advertising technology on monetization strategies. Concerns were raised regarding the use of published journalism in training AI models without appropriate compensation or consent from the original creators, which poses a significant threat to traditional news revenues.
Despite ongoing attempts by news organizations to explore new revenue streams, the Commission highlighted that many South Africans cannot afford subscription services. This reality restricts access to crucial information and contradicts the access rights outlined in Section 39(2) of the South African Constitution.
In related developments, the Expropriation Act has faced scrutiny for potentially destabilizing South Africa’s financial landscape since its introduction earlier this year. Analyzing both media regulations and economic stability is essential as the country navigates these complex challenges.
The South African Competition Commission’s report highlights significant issues concerning the digital news landscape and the dominance of major tech companies. By proposing financial reparations and changes to digital algorithms, the Commission seeks to level the playing field for local news organizations. Ensuring access to information remains vital, especially in light of the economic barriers faced by many citizens. The ongoing evaluation of legislation, such as the Expropriation Act, further compounds the need for careful oversight in these critical areas.
Original Source: www.africanlawbusiness.com
