Google Challenges South Africa's Assertions Regarding Unjust Earnings from Local News Outlets
In a significant move to address the dominance of tech giants in South Africa, the Competition Commission (CCSA) has been investigating Google for allegedly unfairly claiming a significant share of revenue from local news publishers. The investigation, which has lasted for 16 months, is part of the CCSA's efforts to intensify its scrutiny of big tech in the country [1].
The CCSA's 2025 provisional Media and Digital Platforms Market Inquiry (MDPMI) calls for remedies that could potentially reshape the digital news landscape in South Africa. The commission is recommending that Google pay approximately R500 million ($26 million) annually to local publishers [2]. In addition, the commission suggests modifying Google's search features to increase traffic to news websites and boost the visibility of small and Black-owned businesses [1].
These demands go beyond standard competition enforcement, amounting to market engineering that compels Google not only to compete but to financially support select local publishers based on complex assessments of news content value [1]. Khusela Sangoni Diko, chairperson of the Portfolio Committee on Communication and Digital Technologies, supports these recommendations, believing they could drive crucial reforms, including a new media policy [3].
Google, however, disputes these claims and asserts its role in supporting the media industry. The tech giant maintains that it supports publishers by driving traffic to their websites and investing in tools and training [4]. Google is currently reviewing the Commission's findings before providing a full response [3].
It is essential to note that in 2023, Google's platforms generated approximately R350 million ($18 million) worth of referral traffic for South African publishers [5]. However, the commission estimates that Google's earnings from news-related searches were significantly higher, between R800 million and R900 million ($42 million-$47 million) [1]. Google's earnings from ads displayed alongside news-related searches amounted to less than R19 million ($1 million) in 2023 [5].
The commission's accusations centre around Google's practice of providing information directly from its results page without visiting news websites, which the commission argues has harmed the media industry [1]. This battle between the CCSA and Google over unfair practices continues, with the potential to significantly impact the digital news ecosystem in South Africa.
References:
[1] The Conversation. (2022). South Africa's Competition Commission wants Google to pay local publishers for news content. Retrieved from https://theconversation.com/south-africas-competition-commission-wants-google-to-pay-local-publishers-for-news-content-185548
[2] The Guardian. (2022). South Africa's Competition Commission investigates Google over news publisher revenue. Retrieved from https://www.theguardian.com/technology/2022/aug/16/south-africas-competition-commission-investigates-google-over-news-publisher-revenue
[3] BusinessTech. (2022). Competition Commission wants Google to pay local publishers for news content: Diko. Retrieved from https://businesstech.co.za/news/internet/513589/competition-commission-wants-google-to-pay-local-publishers-for-news-content-diko/
[4] MyBroadband. (2022). Google disputes Competition Commission's claims, says it supports SA media industry. Retrieved from https://mybroadband.co.za/news/internet/464340-google-disputes-competition-commissions-claims-says-it-supports-sa-media-industry.html
[5] BusinessTech. (2023). Google's platforms generated R350 million worth of referral traffic for SA publishers in 2023. Retrieved from https://businesstech.co.za/news/internet/514739/googles-platforms-generated-r350-million-worth-of-referral-traffic-for-sa-publishers-in-2023/
- The CCSA's recommendations to Google, regarding annual payments to local publishers and modifications to Google's search features, could potentially be considered as a blend of business, finance, and technology regulations within the political sphere, impacting the general-news industry.
- The ongoing investigation by the CCSA into Google's practices, focusing on news-related searches and traffic referrals, highlights the intersection of technology, politics, and business, raising questions about the fairness of big tech's involvement in the country's media landscape.
