The South African Competition Commission has published a provisional report proposing corrective measures to address inequalities in national news distribution exacerbated by digital platforms like Google and Meta. The report suggests substantial compensation to local news agencies and highlights the challenges faced by South African citizens in accessing information. A public comment period is open for six weeks before the final report is released, addressing crucial issues in the evolving media landscape.
The South African Competition Commission released a provisional report on 24 February outlining necessary measures to address inequalities in the distribution of news, mainly attributed to the dominance of digital platforms such as Google, TikTok, and Meta. This report follows a 16-month investigation into the impact of these digital giants on the media landscape, recognizing the challenges faced by print media and the increasing reliance of audiences on online news, which accounts for 87% of news consumption, predominantly through Google and social media.
The Commission recommended that Google be mandated to compensate domestic news outlets by paying between ZAR 300 million (USD 16.2 million) to ZAR 500 million (USD 27.1 million) to help rectify the imbalances in audience reach and advertising revenues. Proposed changes include modifications to algorithms that would favor local news; allowing news organizations the choice to opt out of AI summaries without losing traffic; holding social media accountable for misinformation; and enhancing monetization capabilities for news agencies.
In light of growing concerns regarding the economic implications of digital innovations, including artificial intelligence and advertising technology, the investigation considered the ramifications on traditional media sectors such as television, radio, and print. This inquiry is critical amidst numerous legal actions against AI firms, which have faced allegations of using published journalism unlawfully for training AI models, thereby undermining revenue streams for journalists.
Despite efforts by news organizations to innovate revenue generation strategies, the report highlighted a significant barrier: a lack of financial capacity among the majority of South Africans to afford media subscriptions. This financial limitation undermines the constitutional right of citizens under section 39(2) to access vital information from various media outlets.
Additionally, tensions are mounting regarding the recently enacted Expropriation Act, with critics warning it could destabilize South Africa’s financial framework following its introduction earlier this year.
In summary, the South African Competition Commission’s provisional report aims to rectify inequalities in the digital news landscape caused by dominant tech companies. Recommended measures focus on compensating local media, enhancing algorithmic prioritization of local news, and addressing misinformation. The report brings to the forefront significant challenges, including accessibility to information and the financial sustainability of South African news organizations. Furthermore, ongoing concerns regarding the Expropriation Act compound the urgency for effective solutions in the media sector.
Original Source: www.africanlawbusiness.com
