The South African Competition Commission has proposed remedies to address news distribution inequalities caused by digital giants like Google and Meta. Their provisional report recommends financial compensation to local news outlets and algorithm changes to ensure fair traffic distribution. The report, stemming from a 16-month investigation, highlights the challenges faced by journalism in a digital economy and invites public feedback before finalization.
The South African Competition Commission has released a provisional report proposing measures to rectify imbalances in the national news landscape caused by major digital platforms like Google, TikTok, and Meta. The report highlights the disparity created as digital platforms dominate news distribution, with 87% of the audience sourcing news online, primarily through Google and social media. Public commentary is being sought for six weeks on the proposed remedies before finalizing the report in approximately four to five months.
The report suggests that Google should compensate local news agencies between ZAR 300 million (approximately USD 16.2 million) and ZAR 500 million (approximately USD 27.1 million) for the adversely affected audience share and advertising income. Additionally, it recommends adjustments in algorithms to enhance traffic to local news articles, accountability measures for social media companies regarding misinformation, and the empowering of news organizations to monetize their content more effectively.
The investigation spans 16 months, examining the vast effects of digital innovation on traditional and emerging media monetization avenues, including AI technologies and advertising ecosystems. Moreover, there are ongoing legal disputes involving AI corporations allegedly utilizing established journalism for training purposes without due compensation.
The report further emphasizes that most South African citizens face financial barriers to accessing subscription-based media, thus infringing on their constitutional right to information. This situation poses critical implications for the dissemination of news and information across the nation. Separately, the Expropriation Act has also drawn scrutiny for potentially threatening the stability of the financial system following its enactment earlier this year.
In summary, the South African Competition Commission’s report brings attention to significant issues within the digital news distribution framework. By advocating for compensation and operational changes among major tech companies, the Commission aims to protect local journalism and ensure equitable access to information. Addressing these challenges is pivotal for sustaining a healthy media ecosystem in South Africa.
Original Source: www.africanlawbusiness.com
