South Africa’s Competition Commission Proposes Remedies for News Distribution Inequities
The South African Competition Commission has issued recommendations to amend disparities in news distribution, disrupted by digital companies like Google and Meta. The report suggests significant financial compensation to local news agencies and proposes algorithm changes to promote local reporting. The inquiry highlights challenges faced by news agencies as audiences increasingly rely on digital sources for information, all amidst a backdrop of legislative issues impacting the media sector.
The South African Competition Commission has proposed remedies to address disparities in the nation’s news landscape, particularly exacerbated by digital platforms like Google, TikTok, and Meta. This provisional report, released on February 24, invites public feedback for six weeks before a final report is published within four to five months. Over 16 months of investigation revealed that digital giants significantly influence audience reach and advertising revenue, with 87% of South Africans now sourcing news from online platforms.
To rectify these inefficiencies, the Commission has suggested that Google compensate national news agencies between ZAR 300 million (USD 16.2 million) and ZAR 500 million (USD 27.1 million) to address the imbalance in audience and ad revenues. Further recommendations include modifying algorithms to prioritize local news, ensuring news organisations can opt-out of AI-generated summaries without losing traffic, and enhancing accountability for misinformation on social media.
The inquiry thoroughly examined how digital innovations, including AI and advertising technology, affect news monetisation, alongside traditional media channels. There is growing concern regarding AI companies using published articles without due compensation, disrupting the financial stability of journalism by replacing traditional media with AI alternatives.
Despite efforts to identify new monetisation strategies, most South Africans face financial barriers to accessing paid media subscriptions, undermining their constitutional right to information. The implications of these findings are profound as the media landscape evolves in this digital era, amid growing scrutiny on technological corporate practices.
In related news, the recent implementation of the Expropriation Act has faced criticism for its potential repercussions on the country’s financial stability, further complicating the financial landscape that news media operations navigate.
In conclusion, the South African Competition Commission’s report addresses urgent imbalances in news distribution influenced by digital giants. The recommendations aim to enhance compensation for local news agencies and ensure that digital platforms support local journalism. As the media landscape transitions towards digital formats, the implications for information access and the future of journalism remain critical. Moreover, the scrutiny on legislation such as the Expropriation Act adds another layer of complexity to the media environment in South Africa.
Original Source: www.africanlawbusiness.com
