Africa-Press – Zimbabwe. Google should pay South African media houses between R300 to R500 million annually over 3-5 years to compensate for lost revenue and address the imbalance in shared value, according to the Competition Commission’s Media and Digital Platforms Market Inquiry (MDPMI) provisional report released on Monday.
The report called for action against search engines like Google and social media platforms like Meta.
The MDPMI was established to investigate potential barriers to competition in the South African media landscape.
Paula Fray, a panel member, explained that while Google generates R800 to R900 million from South African news content, it also undermines around R160 to R200 million in potential value for local media. Fray said:
Our assessment is that the imbalance in the share of total value is around R300 to R500 million annually.
The inquiry found that Google’s algorithm is biased, disadvantaging South African media in favour of international outlets.
It also revealed that most South Africans use social media, such as X, TikTok, Meta, and YouTube, as their primary news source.
The report noted that Meta and X have deprioritised South African posts with links, reducing referral traffic and that South African news outlets are struggling to monetise views on YouTube.
James Hodge, MDPMI chairperson, called for South Africa to impose a 5-10% digital levy on social media and AI companies to compensate local media for lost revenue.
He also stressed the need for search engines to restore referral traffic and adjust algorithms to reduce bias toward foreign platforms.
Hodge recommended that Google share anonymised user data, provide SEO assistance, and pay South African media houses between R300 to R500 million annually over 3-5 years.
He urged Meta to stop deprioritising news on Facebook and increase referral traffic by at least 100%.
Hodge also said there is a need for Meta and X to stop deprioritising news posts with links, and for YouTube to help media outlets, including SABC, better monetise their content by increasing the revenue share to 70% and promoting higher-value direct sales.
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