Competition Commission wants Google to compensate SA news media

The Competition Commission wants Google to compensate South African news media between R300 million and 500 million annually over a three-to-five-year period.

The Commission has released the Media and Digital Platforms Market Inquiry (MDPMI) provisional report, on the impact of digital platforms on traditional media.

It found that Google enjoys a monopoly and unequal bargaining position in the media in South Africa.

The report says there has not been an equitable share of value between Google and news publishers in the country, both historically and currently, affecting advertising revenues.

“What has happened is that people are going through search or social media intermediaries now, AI chatbot, to get their news and not landing on to the media’s own website or watching the SABC in the evening rather than looking at it on YouTube. And that means the money is flowing towards the platforms, the search, social media platforms and not towards the media, that puts the media in a position where it’s unable to be financially sustainable and that has serious consequences for our democracy. We’re looking at short-term compensation from Google in the order of R300m to 500m annually for a three to five-year period,” says Chairperson of the Inquiry James Hodge.

VIDEO | During the Media and Digital Platforms Market Inquiry, Sanef pleaded to the country’s competition authorities to ensure fair compensation: