The South African Competition Commission is investigating Google for allegedly claiming unfair revenue shares from local news publishers, impacting the media industry. Google disputes these claims, stating it supports publishers through traffic generation. Recommendations include compensating publishers and modifying search features, amid ongoing tensions between the tech giant and regulatory authorities.
The South African Competition Commission has heightened its examination of major technology companies, specifically targeting Google. Following a 16-month investigation, the commission has accused Google of unfairly capturing a substantial share of revenue from local news publishers, exacerbating challenges faced by the already vulnerable media sector. A key issue is Google’s dominance in search, particularly evident in its “zero-click” searches that allow users to access information without visiting publisher websites, thereby diminishing traffic and advertising revenue for these outlets.
In response to the commission’s allegations, Google has firmly rejected the accusations, asserting that it significantly contributes to the success of publishers by driving traffic to their sites and providing significant investments in tools and training. Google claims that in 2023, its platforms generated approximately R350 million ($18 million) in referral traffic for South African publishers, while its earnings from ads associated with news searches were significantly lower, at less than R19 million ($1 million).
However, the Competition Commission remains skeptical of Google’s defense, estimating that the company’s actual earnings from news-related searches could be as much as R800 million to R900 million ($42 million to $47 million). To rectify this situation, the commission has proposed that Google provide R500 million ($26 million) to local publishers annually, in addition to altering its search functionalities to bolster traffic to news websites.
Khusela Sangoni Diko, chairperson of the Portfolio Committee on Communication and Digital Technologies, has expressed her strong endorsement of the commission’s recommendations. She posits that these measures could catalyze much-needed reforms and advocate for a new media policy mandating digital platforms, including Google and YouTube, to compensate news publishers for the utilization of their content.
Currently, Google is in the process of reviewing the commission’s findings and has yet to issue a comprehensive response. Nevertheless, it is evident that this ongoing dispute between Google and the South African authorities remains unresolved, indicating that further developments are likely to arise.
In conclusion, the South African Competition Commission alleges that Google unfairly profits from local news publishers, threatening the sustainability of the media industry. While Google defends its influence on traffic generation and claims minimal earnings from news-related ads, the commission counterclaims much higher revenues. Proposed recommendations aimed at compensating publishers and revising search functionalities illustrate the depth of the ongoing conflict, with implications for digital media policy ahead.
Original Source: www.techinafrica.com
