Google Challenges South Africa’s Claims of Exploiting Local News Publishers
The South African Competition Commission has accused Google of unfairly profiting from local news publishers following a 16-month investigation. Key issues include Google’s dominance in search and ‘zero-click’ searches that reduce traffic to news sites. Google disputes the claims, stating it supports publishers, while the commission estimates Google’s actual earnings from news searches are much higher than reported. Recommendations for Google include paying local publishers R500 million annually.
South Africa’s Competition Commission is intensifying its scrutiny of major technology firms, particularly targeting Google. Following a comprehensive 16-month investigation, the commission has accused Google of unfairly profiting from local news publishers, aggravating the challenges faced by the already vulnerable media sector. The primary concern stems from Google’s dominance in search, especially with ‘zero-click’ searches which prevent users from visiting news websites while still obtaining information directly from Google’s results page.
The commission contends that these practices have detrimental consequences for media organizations by diminishing their website traffic and advertising revenue, even as Google continues to profit. In response to these allegations, Google refutes the claims, asserting that it significantly contributes to publishers by directing traffic to their websites and investing in essential tools and training resources.
According to Google, its platforms generated approximately R350 million (around $18 million) worth of referral traffic for South African publishers in 2023. Furthermore, Google’s reported earnings from advertisements linked to news-related searches were less than R19 million (approximately $1 million), which the company argues contradicts the commission’s assertions. However, the commission estimates Google’s earnings from news-related searches to be much higher—between R800 million and R900 million (approximately $42 million to $47 million).
To address these discrepancies, the commission is advocating for Google to pay R500 million (approximately $26 million) annually to South African publishers. They also recommend adjustments to Google’s search functionalities to enhance traffic directed to news websites. In parallel, Khusela Sangoni Diko, the chairperson of the Portfolio Committee on Communication and Digital Technologies, has voiced strong support for these recommendations, asserting that they could facilitate essential reforms, including a media policy mandating digital platforms to compensate publishers for their content.
Presently, Google has indicated that it is carefully reviewing the commission’s findings and will provide a comprehensive response in due course. Nevertheless, the ongoing tensions between the commission and Google suggest that this dispute will persist for the foreseeable future.
In summary, the Competition Commission of South Africa has leveled serious charges against Google for allegedly profiting unjustly from local news publishers. Despite Google’s claims of supporting these publishers through traffic generation and minimal advertising revenue, the commission presents a stark contrast to this narrative, suggesting significantly higher earnings for Google. The proposed measures aim to rectify this imbalance, although the outcome remains uncertain as Google reviews the commission’s findings. As the situation unfolds, it will be critical to monitor both the regulatory actions undertaken by the commission and Google’s subsequent responses, as they will significantly impact the landscape of digital media in South Africa.
Original Source: www.techinafrica.com
