The South African Competition Commission has released a provisional report addressing inequalities in news distribution caused by major digital platforms. Recommendations include significant compensation for local news agencies, algorithm adjustments to support local content, and increased accountability for misinformation. The investigation stresses the impact of digital advancements and highlights challenges in newsroom monetization and public access to information.
The South African Competition Commission has published a provisional report seeking to address disparities in national news distribution influenced by major digital platforms such as Google, TikTok, and Meta. This report, made public on February 24, invites public feedback on its proposed remedies before the final report is released in four to five months.
Following a 16-month study, the investigation revealed that digital platforms account for 87% of news consumption as traditional print media struggles, prompting concerns over the balance of audience reach and advertising revenues. The inquiry commenced under section 43B(1)(a) of the Competition Act of 1998.
The Commission’s recommendations include compensation payments from Google ranging from ZAR 300 million (USD 16.2 million) to ZAR 500 million (USD 27.1 million) to bolster local news organizations. Furthermore, the report suggests modifications to algorithms directing traffic to local outlets, greater responsibilities for social media platforms regarding misinformation, and improving monetization approaches for news entities.
The investigation assessed the impact of digital innovations, including AI and AdTech, on traditional media frameworks such as television and radio. This inquiry is critical, especially amid ongoing legal disputes regarding the use of published work to train AI models without proper compensation for journalists.
Despite news organizations striving for new monetization methods, many South Africans are unable to afford subscriptions, limiting their access to vital information as per section 39(2) of the South African constitution. Moreover, the recent Expropriation Act has faced scrutiny for its potential repercussions on the country’s financial stability after its implementation in January.
In conclusion, the South African Competition Commission’s provisional report highlights significant inequalities in news distribution due to the dominance of major digital platforms. The proposed actions aim to remedy these disparities and enhance the local news landscape while ensuring greater accountability from tech companies. Furthermore, issues surrounding monetization and access to information remain pivotal as the country navigates these challenges.
Original Source: www.africanlawbusiness.com
