Google, Meta face penalties for anticompetitive behaviour towards SA news media

Google could be required to pay up to R500m a year in compensation to SA media outlets after the country's competition watchdog found the tech giant guilty of anticompetitive practices, while Meta and X also face fines.

In provisional findings from an investigation into market activities released on Monday, the Competition Commission said Google's algorithm distorts competition between news media organisations as it over-represents global news media in SA for search and top stories and underrepresents local language and community media.

“The inequity has materially contributed to the erosion of the media in SA over the past 14 years and will continue to do so unless remedied,” the watchdog's report said.

To remedy this, it recommended Google compensate the SA news media by R300m to R500m annually for three to five years, “while putting in place changes to search that will sustainably create shared value with the media through increases in referral traffic”.

The watchdog will publish a final report later this year, with all parties concerned given until April 7 to submit evidence to support their cases.

Google said it will review the report in detail but disagreed with the claim it has taken disproportionate value from publishers.

“In 2023, our products such Google Search and News generated an estimated R350m in referral traffic value for SA publishers while we earned less than R19m from ads displayed next to news queries,” Google said.

“Alongside this, we have invested in products, training and partnerships to support publishers and the broader news ecosystem, and will continue to do so.”

Regarding social media companies, the Competition Commission recommended Meta-owned Facebook and X stop “deprioritising SA news media posts with links” in the home feed, For You and Lastestfeed algorithm and restore referral traffic to the media.

It wants Meta and Google's YouTube to improve the ability of news media to monetise their content on the platforms through increases in revenue share.

If the companies fail to implement the remedies within six months after the final report, a 5% to 10% digital advertising tariff or levy will be imposed, according to the report.

Meta was not immediately available for comment.

The remedies only apply to the SA operations of the companies, the commission said.

Reuters