Johannesburg (Reuters) – Google may be required to pay up to 500 million Rand ($ 27.29 million) a year in compensation for South African media outlets after the country's competition guard body has the technology giant guilty of anti -competitive practices , while Meta and X are also surface fines.
In temporary findings from a probe to market activities, released on Monday, the South African Competition Commission said Google's algorithm is distorting competition between news media organizations to the extent that it is over -representing world news media in South Africa for Search and best stories and under -represent local language and local community media.
“This inequality has contributed significantly to the erosion of the media in South Africa over the last 14 years and will continue to do so unless it has been restored,” said the watchdog report.
To put this right, he recommended that Google should make up for South African news media 300 million to 500 million Rand annually for a period of three to five years, “when implementing changes to search that will create a sustainable shared value with ' r media through erections in referral traffic. “
The Watch will publish a final report later this year, with all parties being given until April 7 to present evidence to support their case.
Google said it will review the report in detail but disagree with the allegation that it had taken disproportionate value from publishers.
“In 2023, our products like Google Search and News produced an estimated 350 million Rand in referral traffic value for South African publishers as we won less than 19 million RANDs of ads displayed next to news inquiries,” said Google in statement.
“Alongside this, we have invested in products, training and partnerships to support publishers and the wider news ecosystem, and we will continue to do so.”
On social media companies, the Competition Commission recommended that meta-ownership of Facebook and X Stop “deprive South African news media posts with links” in the home feed, for you and the Lastestfeed algorithm and restore media referral traffic.
He wants YouTube Meta and Google enhance news media capacity to monetize their content on these platforms through an increase in revenue share.
If all these companies fail to implement these medicines within six months of the final report, a 5-10% digital advertising levy will be set, according to the report.
Meta was not immediately available to comment on.
These companies only apply to the operations of South Africa, the Commission said.