South Africa’s Competition Commission has taken a firm stance against U.S. tech giants Google and Meta, accusing them of anti-competitive behavior that negatively impacts the country's media industry. The Commission’s provisional report, released on February 24, 2025, outlines proposed measures to ensure fair competition and better representation of local media in the digital space.
Google Ordered to Compensate Local Media
The Commission's investigation found that Google's search algorithm disproportionately favors global news sources over South African media outlets. This trend, the report suggests, has significantly contributed to the decline of local media over the past decade.
To address the imbalance, the Competition Commission has recommended that Google pay local news publishers between R300 million and R500 million annually over the next three to five years. Additionally, Google has been urged to adjust its search algorithm to increase traffic referrals to South African news sites, ensuring local voices get better visibility.
Meta and X Directed to Restore Referral Traffic
The report also highlights concerns regarding Meta's Facebook and Elon Musk’s X (formerly Twitter), accusing them of deprioritizing posts from South African news outlets when they contain external links. This practice, according to the Commission, has led to a significant drop in traffic to local media websites, affecting their revenue streams and overall sustainability.
As a corrective measure, the Commission has proposed that Meta and X restore referral traffic to previous levels and allow South African media outlets to better monetize their content on these platforms.
Big Tech Pushes Back
Google has strongly opposed the findings, arguing that its services already provide substantial value to South African publishers. The company claims that in 2023 alone, its platforms generated an estimated R350 million worth of referral traffic for local news outlets while earning less than R19 million from advertising on news-related searches. Google also pointed to its ongoing investments in training, partnerships, and other initiatives aimed at supporting South Africa’s media ecosystem.
Meta, meanwhile, has not yet issued a public response to the Competition Commission’s report.
What’s Next?
The provisional report is open for public comment until April 7, 2025, after which the Commission will release its final report later this year. Should Google, Meta, and X fail to implement the recommended changes within six months of the final report’s release, they could face a digital advertising levy of 5% to 10%.
This move positions South Africa as a leading nation in challenging the dominance of Big Tech in the digital media space. It also signals a broader global trend where governments are increasingly pushing for regulations that protect local journalism from the overwhelming influence of multinational tech corporations.
As the battle unfolds, all eyes will be on how Google, Meta, and X respond—and whether South Africa’s bold move will inspire other nations to take similar action against digital monopolies.
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