Google Declines to Pay Compensation to South African News Editors

Google Declines to Pay Compensation to South African News Editors
Photo: Getty Images 01.05.2025 310

Marianna Erasmus, Head of News Partnerships for Google in Sub-Saharan Africa, spoke with Daily Maverick about shifting news consumption habits, the company's position on the South African Competition Commission’s demands, and what users are increasingly searching for on Google instead of traditional news content.

According to Marianna Erasmus, news consumption habits have undergone a fundamental shift. She described herself as a typical user — frequently checking WhatsApp, social media platforms, and LinkedIn, while also reading articles via push notifications and the Discover feed on Android devices. Erasmus cited findings from the South African Competition Commission’s own study, which showed that only 17% of South Africans access news through Google Search, compared to 77% who rely on social media. Nevertheless, she noted, the regulator continues to urge consumers to return to a newspaper’s homepage — a model she believes no longer reflects current  news consumption behavior. 

“It’s a misnomer to think that the next generation of news consumers will always seek out a website’s homepage first. My sense is reflected in my own behaviour and in the Competition Commission’s study, which shows successful content creators and publishers find a way to package their content so that they go and see the reader, where that reader is.”

The Commission has concluded that digital platforms like Google pose a threat to the sustainability of journalism — and, by extension, to democracy itself. In the provisional report of the Media and Digital Platforms Market Inquiry the regulator has recommended that Google contribute between 300-500 million rand annually for the next three to five years to an industry media fund as compensation for its use of news content. Google has pushed back against the proposal.

“Google acknowledges the societal value of news, but we must be honest: news makes up a small part of our commercial business. Our 2023 and 2024 data points show that fewer than 1% of South African consumers come to Google Search with a news-seeking query. These news queries on Search also don’t monetise well. Google Search revenue typically comes from queries with a prominent market intent, like someone searching for the best trail-running shoes”.

Instead of monetary compensation, Google offers a “greenfield solution”: train publishers, help them use analytics more effectively, and improve their websites. A R114-million digital media transformation fund has already been launched to help small and local publications improve their sustainability.

“The onus cannot be on one platform to make an outsized and unwarranted financial contribution. We believe the Competition Commission missed the mark by not requiring publishers to recognise changing consumer behaviour and adapt their business models accordingly,”

Marianna Erasmus said.

Google is finalizing its response to the Commission's preliminary report and recommendations and will release a non-confidential version to the media. A company spokesperson emphasized Google's willingness to collaborate with the regulator and South African news publishers towards a “balanced and durable outcome based on fact.”  According to her, the Commission’s value calculation is rudimentary and not based on accurate figures.

Citing an independent methodology by Deloitte, Ms. Erasmus noted that Google generated R350 million in traffic value for South African publishers in 2023.

“The onus for the sustainability of public interest news is on all of us — platforms, governments, businesses and publishers. Google was the only platform asked to make a financial contribution. Globally, our learning has been that shared outcomes are far more durable. For example, in California, Google recently co-established a $30-million media fund with contributions from the government and other platforms.”

When asked what users search for on Google if not news, she responded:

“A whole variety of things! Plumbers near me. How to get a red wine stain out of a carpet. Explain algebraic expressions to a 14-year-old. Interestingly, 15% of Google search queries are new every day.”

Addressing why Google is reluctant to pay direct compensation to media outlets, Ms. Erasmus stressed the company’s interest in long-term, durable solutions, rather than entering into “short-term transactional relationships.” 

Source: Daily Maverick

digital markets  South Africa 

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