South Africa’s competition regulator has said Google and other technology companies should implement remediations including paying fines for harming local media outlets.

The country’s Competition Commission said in provisional findings that Google should pay 300 million to 500 million rand (£22m) a year for three to five years to compensate local media firms.

It should also put in place “changes to search that will sustainably create shared value with the media through increases in referral traffic”, the commission’s report said.

Local content

It argued Google’s algorithm hindered the ability of news media to obtain and monetise digital traffic by over-representing foreign media for search and top stories in South Africa, while under-representing local language and community media.

“This inequity has materially contributed to the erosion of the media in South Africa over the past 14 years and will continue to do so unless remedied,” the commission said.

The agency is to publish a final report later this year, with organisations concerned having until 7 April to submit comments and evidence to support their case.

Google said it would review the report but disagreed with the commission’s claim that it took value from publishers.

It said it has invested in products, training and partnerships to support publishers and the broader news ecosystem in South Africa and would continue to do so.

Remedies

The commission said Meta-owned Facebook, TikTok and X, formerly Twitter, should stop “deprioritising South Africa news media posts with links” in their algorithms and should promote vernacular and community media.

“There are market features on digital platforms that distribute news-media content that impede, distort, or restrict competition,” said the commission, presenting the results of a 16-month investigation.

It argued Meta and Google’s YouTube should increase the revenue share provided to news media in order to better enable them to monetise traffic.

If its recommendations are not implemented within six months after the final report, the commission said it would implement a 5 to 10 percent digital advertising tariff.

The remedies only apply to the South African operations of the companies, the agency said.