Competition Commission wants to penalise Google, Meta over foreign ‘media bias’

South Africa’s Competition Commission has proposed fines and regulatory changes for Google, Meta (Facebook), TikTok, X (formerly Twitter), Microsoft, and OpenAI.

The Commission has argued that the Big Tech platforms unfairly impact local media businesses by favouring foreign content, writes Silicon.

Google faces multi-million rand fines

The Commission’s provisional findings suggest that Google should pay between R300 million and R500 million annually for three to five years to compensate South African media outlets.

Additionally, it has called for changes to Google’s search algorithm to increase referral traffic to local news sources.

Impact on local journalism

The regulator claims that Google’s search algorithm disproportionately favours foreign media, making it harder for South African news publishers to gain visibility and monetise their content.

This is especially true of community and language-specific media outlets.

“This inequity has materially contributed to the erosion of the media in South Africa over the past 14 years and will continue to do so unless remedied,” the Commission said in its provisional report from its media and digital platforms market inquiry, released on Monday.

Google’s reply

Search-engine giant Google has responded, saying it will review the report but disputes the claims that it is taking value from publishers.

The company also emphasised its investments in news-related products, training, and partnerships to support South African journalism.

Social media platforms under scrutiny

The Commission also criticised Meta, TikTok, and X, urging them to stop deprioritising South African news posts with links and instead promote local and community media content.

Furthermore, it recommended that Meta and YouTube increase the revenue share for news media, ensuring local publishers benefit from digital traffic.

Penalties for non-compliance

If these measures are not voluntarily implemented within six months after the final report, the Commission warned it would impose a 5-10% digital advertising tax on the companies’ South African operations.

The final report is expected later this year. Affected companies have until 7 April to submit responses or evidence.

Do you agree with some of the Competition Commission’s findings?

Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. 

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