The report proposes measures against Google, Meta* and YouTube to restore fair competition in the market.
The Media and Digital Platforms Market Inquiry (“MDPMI” or “Inquiry”) released its provisional report, presenting its provisional findings, recommendations, and proposed remedial actions. This follows16 months of extensive evidence gathering, public and in-camera hearings, expert report submissions, consultation with industry role players, a consumer survey, and focus group discussions.
The provisional findings, recommendations, and proposed remedial actions are now open for public comment and stakeholder consultation before the final report is released. The report refers to digital giants such as Google, Meta, Microsoft, OpenAI, X (formerly Twitter) and TikTok, and proposes some measures aimed at remedying the behavior of these players that negatively affects competition in digital advertising and journalism in South Africa.
“These provisional findings and remedies only apply to South African operations for global and domestic companies. In many cases, the Inquiry has presented the outcomes it wishes to see whilst giving space for platforms to see how best this can be achieved,”
said the Commission in its press release.
Some of the key provisional remedies include: Why this Inquiry is crucial
• Google to compensate the SA news media R300-500 million annually for a three- to five-year period for the imbalance in shared value whilst putting in place changes to search that will sustainably create shared value with the media through increases in referral traffic. This includes the removal of search bias in favour of foreign media and YouTube, and the promotion of vernacular and community media.
• Meta to stop deprioritising news on the Facebook feed to restore referral traffic to the media from its peak with at least a 100% increase in referral traffic. Meta and X to cease deprioritising news posts with links in the user feed.
• YouTube to improve the ability of the media and broadcasters, including the SABC, to monetise their content on its platform through increases in the revenue share to 70% and active promotion of higher value direct sales by the media.
• To address misinformation, a recommendation for the Electronic Communications and Transactions Act of 2002 to be amended to introduce platform liability for harmful content and the amplification of misinformation. The Inquiry proposes that the social media platforms partner and compensate the media on fact-checking.
The Commission also recommends that South African news publishers be allowed to negotiate collectively with AI firms over the use of their content for training purposes. This reflects a growing global concern over how artificial intelligence tools, like ChatGPT, scrape and repurpose online content without proper authorisation or remuneration.
The antitrust watchdog noted that the findings and remedies are provisional and that further submissions, evidence, and engagements with the Inquiry following the release of the provisional report may result in changes to these findings, recommendations and remedies.
“The release of the provisional report aims to spark debate and engagement, not just from affected stakeholders but also the public given the importance of the news media for achieving the Constitutional rights of citizens,”
said the Commission.
Comments from stakeholders and the public will be accepted until April 7, 2025.
Why this Inquiry is crucial
The Inquiry, initiated in terms of section 43B(1)(a) of the Competition Act 89 of 1998 (as amended) (“the Act”), was initiated because the Competition Commission had reason to believe that there are market features on digital platforms that distribute news media content that impede, distort, or restrict competition, or undermine the purposes of the Act.
The news media is essential for free expression and democracy, informing citizens and holding institutions accountable. Globally, the media industry is undergoing rapid change due to the shift to online news consumption, challenging traditional revenue models and necessitating changes to business models.
Traditional advertising revenue is rapidly declining and whilst some media have pivoted to subscriptions, replacing traditional ad revenue with digital ad revenue has been elusive.
“In South Africa, the financial challenges to commercial and community media, as well as the public broadcaster, have led to shrinking newsrooms, closed bureaus, and news deserts outside the metros,”
said the Commission.
There is limited scope in SA for the majority to pay for news and subscription models are not an option for a growing, deconcentrated and inclusive economy. the public and community media. This threatens access to news and media diversity.
“Whilst there are challenges that the media must face from the disruptive effect of digitalisation, the Inquiry provisionally finds that these challenges are exacerbated by the conduct of platforms that hinder the ability of the news media to secure and monetise digital traffic. These digital platforms do not produce news themselves and cannot replace journalism’s role,“
stressed the regulator.
If implemented, the Commission’s recommendations could reshape the relationship between South African media companies and global digital giants. Financial support from companies like Google would provide much-needed relief to struggling newsrooms, ensuring the sustainability of quality journalism in the country.
*Meta, along with its subsidiaries Facebook and Instagram, is banned and designated as extremist in Russia.
Source: CompCom.co.za
