South Africa’s Competition Commission has accused Google of unfairly profiting from local news publishers, claiming it takes a larger share of revenue than appropriate. Google disputes these claims, stating it supports publishers by generating traffic and offering tools. The commission recommends a significant compensation for publishers and modifications to Google’s search practices. Khusela Sangoni Diko supports these findings, suggesting reforms to create a new media policy.
The Competition Commission of South Africa has escalated scrutiny on major technology firms, particularly focusing on Google. After a 16-month investigation, the commission has accused Google of unfairly capturing a large share of revenue that ought to benefit local news publishers, thus worsening the challenges faced by the media sector.
At the heart of the issue lies Google’s dominance in search functionality, especially referring to “zero-click” searches, where users receive the necessary information directly from Google’s results page without visiting the publishers’ sites. The commission contends that this practice diminishes the web traffic and advertising income for media outlets, while Google continues to thrive.
In response, Google contests these allegations, asserting its critical support for publishers by generating traffic through its platforms and providing necessary tools and training. The company claims that it generated R350 million ($18 million) of referral traffic for South African publishers in 2023, whereas its earnings from news-related ads were only around R19 million ($1 million).
Nonetheless, the commission disputes Google’s figures, estimating that the tech giant’s revenue from news-related searches could be substantially higher, ranging from R800 million to R900 million ($42 million to $47 million). To rectify this imbalance, they recommend that Google annually compensate local publishers R500 million ($26 million) and modify its search features to enhance traffic to news websites.
Khusela Sangoni Diko, the chairperson of the Portfolio Committee on Communication and Digital Technologies, has voiced strong support for the commission’s proposals. She advocates for reforms that could lead to a new media policy mandating that digital platforms, including Google and YouTube, provide financial compensation to news publishers for their utilized content.
Currently, Google is reviewing the commission’s findings before issuing a detailed response. However, it is apparent that this issue is far from resolved and will continue to evolve as discussions progress.
In summary, the Competition Commission of South Africa challenges Google’s revenue practices concerning local news publishers, alleging unfair profit-sharing that undermines the media industry. Despite Google’s defense claiming its positive role in driving traffic and generating referral income, the commission suggests Google should compensate publishers significantly. The outcome of this scrutiny remains to be seen as both parties prepare for suitable measures going forward.
Original Source: www.techinafrica.com
